Should I keep a small mortgage

redundantmortgage

My current mortgage deal ends in just under 3 months time after which I'll have 5 years left.

At the moment I have £17,752 remaining and £40k in my savings. My original plan was to pay the balance off in full the day after the current deal ends.

I do however intend on moving again in the not too distant future so would I be better off bringing the balance down to say £100 to keep the mortgage active?

I'm with Nationwide.

Grumpy_chap

redundantmortgage said:

My current mortgage deal ends in just under 3 months time after which I'll have 5 years left.

At the moment I have £17,752 remaining and £40k in my savings. My original plan was to pay the balance off in full the day after the current deal ends.

I do however intend on moving again in the not too distant future so would I be better off bringing the balance down to say £100 to keep the mortgage active?

I'm with Nationwide.

How flexible is the current mortgage?  Does it allow you to draw down the funds that you have repaid?
Is the facility of the current mortgage sufficiently large to fund the requirement of the future move?

Tranboy

Once you have paid it off the deeds are yours, I read somewhere some people leave a nominal amount on the morgage so the bank/building society have to keep them safe. Also fraud has been stopped by registering with land registry to notify of any second mortgage or fraudulent sales, this can be done for free. If you renewed your mortgage and it was portable you could use it for the new house perhaps.

user1977

Tranboy said:

Once you have paid it off the deeds are yours, I read somewhere some people leave a nominal amount on the morgage so the bank/building society have to keep them safe.

If it's a registered title then there's no such thing as "deeds" which need to be kept anywhere (and lenders these days don't want the hassle of storing them anyway).

redundantmortgage

Grumpy_chap said:

redundantmortgage said:

My current mortgage deal ends in just under 3 months time after which I'll have 5 years left.

At the moment I have £17,752 remaining and £40k in my savings. My original plan was to pay the balance off in full the day after the current deal ends.

I do however intend on moving again in the not too distant future so would I be better off bringing the balance down to say £100 to keep the mortgage active?

I'm with Nationwide.

How flexible is the current mortgage?  Does it allow you to draw down the funds that you have repaid?
Is the facility of the current mortgage sufficiently large to fund the requirement of the future move?

Sorry I don't really understand your questions. It will be a SVR mortgage once the deal ends and when I move it will be selling my property and buying a new one which will be more expensive and therefore I'll need a mortgage.

user1977

There's no advantage in keeping the mortgage "active".

redundantmortgage

user1977 said:

There's no advantage in keeping the mortgage "active".

None at all?

What if existing customers get a better deal than new customers?

TimSynths

user1977 said:

Tranboy said:

Once you have paid it off the deeds are yours, I read somewhere some people leave a nominal amount on the morgage so the bank/building society have to keep them safe.

If it's a registered title then there's no such thing as "deeds" which need to be kept anywhere (and lenders these days don't want the hassle of storing them anyway).

Santander returned mine to me years ago and I still have 6 years left on the mortgage.

user1977

redundantmortgage said:

user1977 said:

There's no advantage in keeping the mortgage "active".

None at all?

What if existing customers get a better deal than new customers?

They don't. 

steampowered

When you buy the new place, your mortgage on the current property will be repaid anyway.

You can't really "port" a mortgage with a minimal balance on it.

Movie_Star

Why keep a mortgage when you can easily afford to end it? The interest payable is like putting cash in the middle of the floor and burning it.