Keeping your mortgage going

wuzzbert

Hi all,

Im very pleased to say that I only have 6 payments left on my fully flexible mortgage. Ive heard people say that you should keep your mortgage running with a very small amount left to owe. That way you can always borrow through it if needs be and take advatage of lower rates than loans and avoid set up costs.

What are the pros and cons of keeping a small amount on your mortgage. If I move house in the future am I best paying it off? Plus what about if I buy a second property?

Your help and advise would be greatly appreciated.

Chris

wuzzbert

Can nobody advise me on this please???

abouttimetoo

Hi Wuzzbert

I can't give you a definitive answer as each mortgage provider has different T&C's. This question comes up most weeks on this board so I would also use the search facility but I can tell you it last came up on the 28th so if you have a look at page 3 there is one called something like 'close mortgage or leave £1'

Good luck

mollypoppy

I'm with nationwide on a 2.5% rate. I cleared my mortgage early on in the year but have left a £1 (they call it a nominal balance) which I pay no interest on. I also have the facility of a drawdown facility of over £25000 if I need cash for some reason. I gained this by paying my mortgage back very quickly. I was paying large lump sums so was able to build up this drawdown facility. I have extended my mortgage an additional 10 years so my facility remains.