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Don't repay all but leave £1 balance at SVR???
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ericthekidstoner
Posts: 361 Forumite
Hi all
My fixed term is finished and I'm luckily in a position to repay all of the remaining balance. So I went to do so this morning but the staff suggested that I shouldn't. Instead, leave a £1 balance so I could avoid any new application fees if I was to use the facility to purchase another property or as a flexible loan - at a good rate of 2.5% (current Nationwide SVR).
Seemed a good concept to me. However, I don't quite understand the logistics of it...
Do I still have to repay regularly (monthly)?
Do I have to switch to interest only?
Advice and suggestions please. Is this a common practise??
tia muchly
My fixed term is finished and I'm luckily in a position to repay all of the remaining balance. So I went to do so this morning but the staff suggested that I shouldn't. Instead, leave a £1 balance so I could avoid any new application fees if I was to use the facility to purchase another property or as a flexible loan - at a good rate of 2.5% (current Nationwide SVR).
Seemed a good concept to me. However, I don't quite understand the logistics of it...
Do I still have to repay regularly (monthly)?
Do I have to switch to interest only?
Advice and suggestions please. Is this a common practise??
tia muchly
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