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Keep mortgage open with a nominal amount?
iwannabargain
Posts: 13 Forumite
Hi all,
Not sure whether this has been raised in the past before or not. Tried a search but didn't find anything, so hopefully I will not be annoying anyone with this question.
I am fortunate enough to be in the position of being able to pay off my mortgage - currently still owe about 8K. However, before I do so, I was wondering whether, with the current low interest rates (for me my nationwide mortgage rate is 2.5% variable - 2% above base rate), it would be better to keep a nominal amount on the mortgage, say £100, and reduce my monthly payments so that it would take 5 five years or so to payoff this amount, just so as to keep the option of being able to call on a cheap low interest loan if required. I believe that the nationwide BMR mortgage allows you to call on your overpayments.
Would anyone advise against this, and if yes what would be the reasons?
Many thanks in advance.
Not sure whether this has been raised in the past before or not. Tried a search but didn't find anything, so hopefully I will not be annoying anyone with this question.
I am fortunate enough to be in the position of being able to pay off my mortgage - currently still owe about 8K. However, before I do so, I was wondering whether, with the current low interest rates (for me my nationwide mortgage rate is 2.5% variable - 2% above base rate), it would be better to keep a nominal amount on the mortgage, say £100, and reduce my monthly payments so that it would take 5 five years or so to payoff this amount, just so as to keep the option of being able to call on a cheap low interest loan if required. I believe that the nationwide BMR mortgage allows you to call on your overpayments.
Would anyone advise against this, and if yes what would be the reasons?
Many thanks in advance.
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