Keeping a mortgage open with £1. Why? What are the risks?

Algienon

I'm due to pay of my mortgage next month. I was in the bank asking about it today and the advice I got was to keep it open with £1, so that:

1. They would keep my deeds safely stored in their vault at head office
2. I could easily raise money again without having to pay arrangement or legal fees

What are peoples thoughts on this?

I don't intend to move house and take out another mortgage anytime soon

Algie

frankie1star

I tried to do this when I paid mine off with C & G but they didnt offer the service(wouldnt do it), but your suggestions were the reasons I asked,

borders

I considered this when paying off my mortgage. No need to for the BS to keep your title deeds. It's just extra paperwork nowadays and doesnt have the importance it used to have. Land registry office (or whatever the correct title is) hold all the records for house ownership and sales. Having the deeds can make it easier for you but isnt essential.

I'm pretty sure you would be able to raise money against your house with other banks if you had to. Might be some savings in valuations or surveys but maybe not. Your own bank might charge more than other banks.

I bought a fire resistant safe box and keep my deeds and other papers in it.