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Redemption Question

tesuhoha
tesuhoha Posts: 17,971 Forumite
Part of the Furniture 10,000 Posts Combo Breaker Mortgage-free Glee!
in Mortgages & endowments
We have been overpaying our mortgage slowly until this month when the amount we owe is finally under £500. I therefore wrote to Nationwide asking them how much to redeem the mortgage.

Today I have had a letter giving the amount to reduce the balance to £1. I have been told there will be no additional amounts to pay on this and no interest, however, they will not release their charge until we close our account fully. They seem to regard this as an option.

Can anyone tell me if there is any advantage in keeping the mortgage account open in this way. Sorry for my ignorance:o
The forest would be very silent if no birds sang except for the birds that sang the best






Comments

  • kingstreet
    kingstreet Posts: 39,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    In the "good old days" keeping a small balance on your mortgage account was a way to get free deeds storage. Now transfers are done with a single sheet of paper, this is no longer necessary.

    If you pay off your mortgage, the charge over the property will be lifted and you will be sent the historic deeds and previous conveyances envelope for you to do with as you will.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Having a pound outstanding means you can borrow money in the future against your overpayments without having to reapply for a new mortgage.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • tesuhoha
    tesuhoha Posts: 17,971 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Mortgage-free Glee!
    HappyMJ wrote: »
    Having a pound outstanding means you can borrow money in the future against your overpayments without having to reapply for a new mortgage.

    Thank you. We are not likely to want to do that.
    The forest would be very silent if no birds sang except for the birds that sang the best






  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Good luck, it is an amazing feeling when you pay off the last payment.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
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