Deliberately not paying off the last bit

sondheimsoc

A few years ago I moved our £52,000 mortgage from the Nottingham Building Society to the Royal Bank of Scotland's current account mortgage. Since then I have managed to pay off £42,000 of the debt. I could easily pay off the last £10,00 but (and I don't really understand this) because I try to ensure that there is always some money in the current account and don't often go into minus figures, this means that I effectively have a £10,000 mortgage which rarely costs me anything. The most I pay is about £1.20 a month and often it's nothing. So I don't really see the point of paying it off before its due date of 2015 as having a £10,000 buffer is very useful.
But not sure if there is something I haven't realisd and it really is too good to be true.
Lynne

nrsql

There's not point in paying it off. Having the money in the offset ccount is the same as paying off the mortgage.
At the moment you have an overdraft facility at the mortgage rate and they are keeping your deeds free of charge.
There was in fact no need to pay off the £40,000 - you could have left it in the offset account with the same result.

sondheimsoc

I never thought of that. But it was costing me money whereas now it isn't.
Lynne