Natwest: Do not fully pay off your mortgage (Leave £100)

Sillychuckie

(Background - but a little off topic)
I recently paid off my mortgage by doing a large overpayment on a 0% credit card (NatWest 0% for 18 months). I was on an SVR, with a remaining term of < 18 months, so it seemed like a no brainer, and they don't charge a fee to do this.

(Anyway, to get to the point):

I repaid my balance, less ~ £45 which remained. I didn't want to pay more off, because you need to leave some small amount on it so they can issue a 'redemption statement' (an officially calculated value to repay in order to close it).

A few days ago, I had my redemption statement come through showing £45.79. The day after, I had a 'Closure' letter saying my account had been closed. I had not yet repaid the £45.79.

Discussing this with NatWest (and checking with their closure team), it turns out that they do not bother asking people to fully repay the loan if the outstanding balance upon production of a redemption statement, is less than £100.

They have written off the £45 I owe them, and even though I was protesting (I don't like owing people money), they weren't interested in taking it. They explained that this is standard procedure.

So: MSE TIP to save £100!
Repay your mortgage by all means, but (if you are with NatWest anyway), leave around £99 (including interest) on it, so come redemption, they write it off and you save yourself that £99.

Had I known, I'd have left more on there (but £45 free is better than nothing). Most people probably never know about this, since their final redemption value may be higher... and getting to this stage is probably only a once in a lifetime event anyway.

Thanks NatWest.

SC

lukephilip

Doesn't work with HSBC unfortunately, but worth a try!