What's the minimum you can have on your mortgage?

inigma

I was thinking about it recently, could you just leave £1 on the mortgage or £0.01? Do banks have a minimum amount before they direct debit it automatically?

Horseunderwater

Are you daft?

inigma

Sometimes.

It's a hypothetical thing. I was wondering as it would be more costly for the bank to administer a mortgage of £1 so I just wondered if they would direct debit and pay it off automatically.

argomatt

The minimum I was allowed to go down to was £1 on my NRAM mortgage.

I sent an overpayment once which took the balance below £1 and they refunded the difference to my bank without me asking.

I didn't want to redeem the mortgage because of the fees (this was during the 5yr fixed rate period and the early redemption fees v high) and wanted the flexibility to borrow back my overpayments.. which I have since done.

argomatt

PS.. When the balance was down to £1 they didn't take any monthly payments. The DD was cancelled.

inigma

Thank you Argomatt most useful!

kirstypark

i have a balance of £1 owning on one mortgage, so I can do a further advance if needed. There is no interest due and the direct debit was cancelled. I accidently overpaid it instead of our other mortgage last month and so it was in credit for £499. They didnt notice for about 3 weeks until I phoned them. Was thinking of charging them interest on that...

Kodagirl

Kirstypark!!!!
HaHaHaHa!!!!!!!:D

Go on,put a claim in,i dare you!!!!:rotfl:

SillySod

I have a NatWest mortgage, many years to run, and they told me that I shouldn't overpay below £100. No idea what would happen if I transferred them the odd extra quid or so, but am happy to let the mortgage ride....