Nationwide Mortgage with £1

Financial_Savvy

Hello

Has anybody left £1 on their mortgage with Nationwide? I understand that you can do this and not be charged any interest. Info from the Nationwide site below:

You may be interested in requesting a £1 nominal balance which gives you the freedom of:

• Further borrowing
• Keeping the deeds at Nationwide free of charge
• Status at Nationwide

There is no interest charged for this service but you would need to request a £1 nominal balance in your redemption letter.

alanobrien

This is real. I spoke with customer services about it last week. I have a 2 part mortgage due to moving (further advance) and wanted to pay off the first part when it comes out of its fixed rate in a few months time. They told me about the nominal £1 balance and said they would sort it out for me in the redemption letter. Very useful add on to the mortgage.

keeperbear

Financial_Savvy wrote: »

Has anybody left £1 on their mortgage with Nationwide?

As copies of the deeds are now stored electronically at the Land Registry, there is no real point in doing this. I couldn't wait to clear my mortgage and have complete freedom over my property.

debjam

Leaving the £1 nominal balance also means you don't have to pay any early repayment fees. I checked that when I phoned for a settlement figure last week as we still have 15 years left on our mortgage and so would incur a fee.

Financial_Savvy

For those that have closed a Nationwide mortgage how did you present the funds to them? In a cheque?

devils_advocate

Left a quid outstanding on my Nationwide mortgage a few years ago. No problems.

Dee140157

I too have a £1 mortgage with the Nationwide. As I have no plans to move at the moment there is no great need to redeem this £1. I pay no interest and deeds have always been safe. I am in the situation I may need to raise some funds to put son trough uni. in which case it should be easy for me to increase my mortgage again. So unless you desperately want to redeem fully then it is an ok thing.