Nearly mortgage free


I took out a 25 year mortgage in 2009. I have maanged to overpay by more than £30,000 and late next year, at my current overpayment rate, i will have paid off my mortgage. I'm in my early 40s.

What i would like to understand if is there is any reason why i may want to keep it opwn with a very small amoutn in there e.g. if i latterly decided to get another mortgage, as an existing customer would this be advantageous?

Are there any gotchas i need to avoid e.g. Early Repayment charges, or would that not be relevant as i would have had it for over 10 years?

Many thanks!


  • jimjames
    jimjames Posts: 17,497
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    edited 16 July 2021 at 1:40PM
    I can't see any reason why you'd need to keep it on with a small balance. Historically it used to be suggested to keep it going so the mortgage company stored the deeds for you but I understand they are now electronic so this isn't meant to be an issue any more.

    I guess if the overpayment is just sitting on your account then one reason to keep it is if you think you may need access to that money in the future. I have a high overpayment balance on one of my mortgages and have left it there for the last 8 years just in case. It means the mortgage is only £4 per month.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • collinsca
    collinsca Posts: 159
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    Thanks - some good point's i'd not considered.
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