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How low can I go?

fred246
fred246 Posts: 3,620 Forumite
Sixth Anniversary 1,000 Posts Name Dropper
in Mortgages & endowments
I have got an 8 year mortgage left with Nationwide. £800 with £10 a month repayments. I want to keep the mortgage so I have a direct debit for my current accounts. Surely Nationwide would get fed up with a £50 mortgage with 50p repayments. Have other people kept up tiny mortgages? How much can I overpay?

Comments

  • ACG
    ACG Posts: 24,688 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Ill let you set up a DD to my bank account for £5 a month :)

    I dont think there is a minimum set in the contract, but you might find it gets to an amount they decide to just write it off because you are costing them more than they are earning from you.
    I am a Mortgage Adviser
    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.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    fred246 wrote: »
    I have got an 8 year mortgage left with Nationwide. £800 with £10 a month repayments. I want to keep the mortgage so I have a direct debit for my current accounts. Surely Nationwide would get fed up with a £50 mortgage with 50p repayments. Have other people kept up tiny mortgages? How much can I overpay?

    Why would it be 50p repayments ? If its a normal repayment mortgage then the £10 a month will stay constant.
  • sal_III
    sal_III Posts: 1,953 Forumite
    Fifth Anniversary 1,000 Posts
    AnotherJoe wrote: »
    Why would it be 50p repayments ? If its a normal repayment mortgage then the £10 a month will stay constant.
    I believe the OP meant to overpay the mortgage and leave £50 balance for 8 years term, hence ~50p repayments. My guess is he is after some incentive to have a DD for mortgage.
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Most lenders have a figure at which point they consider the mortgage to be in the redemption phase. You need to ask NW what that figure is for them.

    £500 is not uncommon...
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Do you need a direct debit coming out of your account every month?

    You could get a credit card and set a direct debit up at the minimum payment and always have a balance on it rather than messing about with a tiny mortgage.
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
    Or set up a DD for a very small amount to charity.
    Thinking critically since 1996....
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