Nominal balance on mortgage

bryn-hyfryd

We are looking to clear our mortgage but have been told we can keep a nominal balance on it (£1), interest free.

Does anyone know the pros / cons of doing this, please?

Bufger

The lenders sometimes like to do this as it enables them to keep your deeds and if you wish to remortgage in the future it makes it easier to do so. If you dont intend to remortgage then there isnt much point.

getmore4less

Also keeps a charge on the property so harder to steal.

luckyfool

Means

1) With some lenders you can draw money back down easily
2) The lender will hold on to your title deeds free of charge. Otherwise they get sent to you and you either need to pay to have them stored securely elsewhere at your solicitors or similar.