Paying off to minimum amount

Navyblue_2

We have a flexible mortgage with Santander. The period runs for another 8 years but we have been overpaying by 150% for the past few years which has reduced the term to be repayed in June 2020. We have just got a lump sum which would enable us to pay off the mortgage completely which has a £300 redemption charge. We could also take the mortgage down to the minimum amount to keep the account open (£500) and would stlll allow us to draw on the available credit facility should we need it. The payments for the remainder of the term is £5.86 on current rate of 2.74% so for the overall period remaining we would pay £556.70. To my mind this looks like a fairly straightforward decision, but would welcome any negatives that I may not have seen. Thanks

TrickyDicky101

I have a product with similar features through Nationwide and what you are doing is exactly what I am already doing - hence no negatives from me

EDIT: the mildly interesting thing with my NW mortgage is that the redemption charge for closing the account - whilst pretty small at £90 - is waived after the mortgage has run for at least 10 years. So if I keep the mortgage running until at least 2022 when this gets waived, my effective interest rate (in the absence of any rate rises in future) is negative vs payoff of mortgage immediately. Crazy stuff - NW are essentially paying me to borrow money from them.