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Can I have a £1 mortgage?

Bonbon
Bonbon Posts: 564 Forumite
in Mortgages & endowments
I intend to pay off my mortgage this month, but will be charged a £90 penalty for paying it early.Does anyone know if I can repay it all except for £1 to avoid the charge. (its not a lot but I would rather keep it than give it to them) I know that it used to be normal to do this, so that the Building Society would keep your deeds, but I think they are done electronically now with the Land registry so this might not be relevent any more.

Comments

  • chappers
    chappers Posts: 2,988 Forumite
    Don't see why not
  • poppy_f1
    poppy_f1 Posts: 2,637 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    yeah, my mum officially still has a mortgage of £1 in order for the BS to keep hold of the deeds without any further charge, also they said by leaving it open it made it easier if she ever needed to draw further funds, saved opening up a new mortgage
  • Noz
    Noz Posts: 3,869 Forumite
    Part of the Furniture Combo Breaker
    Some lenders have a minimum balance so that would be the only slight concern I would have but other than that there's no reason why not
  • Anon
    Anon Posts: 14,562 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It depends on the building society - Halifax used to operate a Deedstore whereby you had to keep £100 in the mortgage and they then look after your deeds for free (no interest on the £100). Our other property (different BS) they keep the deeds so long as you get buildings insurance through them - I was interested to read your comment about them now being electronic anyway - I will have to look into this as the insurance premium has crept up and is not competitive!

    Anon
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    In the vast majority of cases the "deeds" have only curiosity value as most land is registered and the LR deal with the stuff electronically now. It is wrong how much is charge by lenders for redeeming a mortgage, but £90 is not bad compared with some of the fees charged in the past. Remember these fees WILL rise in the future and you might be better to pay £90 now rather than a larger fee when you decide to dispose of the property.
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
  • Bonbon
    Bonbon Posts: 564 Forumite
    The £90 is not an exit fee, it's a penalty for paying it off 11yrs early. If it was less than 10yrs then there would be no charge, but I can't wait, I want to be able to shout now............I'm mortgage free!! That's why I was thinking to leave £1 outstanding, so technically I haven't paid it early.
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Bonbon wrote: »
    The £90 is not an exit fee, it's a penalty for paying it off 11yrs early. If it was less than 10yrs then there would be no charge, but I can't wait, I want to be able to shout now............I'm mortgage free!! That's why I was thinking to leave £1 outstanding, so technically I haven't paid it early.


    Sorry I misunderstood. Make them wait and save the £90. Watch out for the fees on sealing the mortgage as well though.
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    terryw wrote: »
    In the vast majority of cases the "deeds" have only curiosity value as most land is registered and the LR deal with the stuff electronically now.

    Keep them though - they can be absolutely fascinating!
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    neverdespairgirl wrote: »
    Keep them though - they can be absolutely fascinating!

    Yep, got to agree. The old LR registration form used to have the question " Description of Instrument".........it was hard to resist writing "trumpet"!
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
  • neas
    neas Posts: 3,801 Forumite
    my parents did this for a couple years so they didnt get charged extra :P. Small interest on 1 pound hehe.
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