Final mortgage payment - except for £1. A good idea?

strugglingsaver

I have just tried to make a final payment on my mortgage but was persuaded by Nationwide to pay everything except £1, which I would continue to owe them (no interest added to this, they promised). In exchange for this, they would look after the deeds. Am I getting a good deal - care of my deeds for £1? Or does it mean that I don't own my house, but Nationwide does? What are the implications of this and can anyone advise about it?

ChopperST

I think this is a bit outdated now as your deeds are now both electronic and paper. In days gone by the paper deeds were yours (or the banks) proof of ownership of a property and I wont point out the obvious as to what would happen if they were misplaced. I think nowadays the deeds are electronic and the issue of holding the deeds is less improtant than it once was but I'm sure someone with a bit more knowledge will be along to fill you in exactly as to whats best to do....

DVardysShadow

The effect of this is to keep the mortgage open, so you can ask for a further advance. Otherwise, the mortgage is discharged and taken off the LandReg so you have to raise a new deed to get a loan form the NW

cashandassetpoor

DVardysShadow is correct. It will make the process of borrowing more money (should you need to) in the future far easier, and more liekly to score well during credit checks as you will be an existing borrower.