Mortgage Dilemma

omega63

omega63

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In a position to pay off our mortgage, however the missus has got it into her head that we should leave £1000 outstanding for the duration which is 5 years. What do you think? Need to make a decision by Friday (30th)!
 
without knowing the details and not being a IFA, is there an early repayment penalty? If not, what advantage is there in leaving a small balance, other than you may get a better deal with existing mortgage provided if looking to move and are an existing customer......
 
I'm no financial genius, but can't think of a solitary reason for leaving 1k outstanding... did she give a reason for it, apart from maybe wanting to shopping with the 1k!
 
Without being nosey how many morgage payments would it take to recoup the £1000? I would pay it off.
 
She has it in her mind that leaveing 1k will be good with credit agencys in the future.
 
it shouldn't make a difference, but speak to the mortgage co. They may suggest leaving £1 left to pay so that they will then keep hold of the deeds FOC in a secure place. Better that than you having them and them getting lost/damaged or you having to pay for storage.
 
omega63 said:
She has it in her mind that leaveing 1k will be good with credit agencys in the future.
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I thought that would be the reason. The theory being you're still making regular payments for the next 5 years, and making your credit report happy.

I still buy things on my credit card (even though I have the funds available to pay cash) and pay that off at the end of every month for the same reason.

Whether it actually has any usefulness in reality on a mortgage, I'm not sure, we never got one when we bought this house. :)
 
If there is no early penalty then I don't see the need to keep £1k on it.
I have read some people adivse to do what lawrie says simply to get deeds kept on the cheap. Although I understand safety deposit boxes at banks are pretty cheap now, so you could rent one of those.
 
lawrie29 said:
it shouldn't make a difference, but speak to the mortgage co. They may suggest leaving £1 left to pay so that they will then keep hold of the deeds FOC in a secure place. Better that than you having them and them getting lost/damaged or you having to pay for storage.
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I think these are all held electronically by the Land Registry now, so having the actual deeds is no longer as important as it once was. It would be worth checking that with a solicitor first though as IANAL.
 
We paid off our mortgage early and as we had been paying for a good few years there was no early settlement fees. As far as we were concerned it lifted the debt off our shoulders. I will say we had to fight afterwards to get our deeds as the mortgage company was reluctant to hand them over even after several weeks of asking.

We actually went to the Daily Mail in the end to see if they could help, and a Mr Cohan on their consumer advice/help desk works marvels, who he contacted we don't know but we think hell must have broken out because 2 days later we had a couriered parcel delivered with our deeds in it.
As for who holds our deeds now they are in our solicitors hands free of charge as long as we remain clients of theirs.

Realspeed
 
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Get shot of it.

Great feeling when I finally paid off mine.
 
*Sigh* only just got our first one :(
 
I'd get rid of it myself.

As a tip for those who don't already know..........if your mortgage company allows it, consider paying weekly instead of monthly as it does help to pay quicker.
 
Kaouthia said:
I still buy things on my credit card (even though I have the funds available to pay cash) and pay that off at the end of every month for the same reason.

QUOTE]

I could be wrong but paying off your credit cards each month wouldn't count. Only going from the experience I had when i bought my car the other year. They wouldn't accept credit cards because I paid them off each month. The fact I'd had 4 cars previously on credit never missing a payment and paying the last one off a year early had no bearing either. Because I hadn't had anything on credit for 5 years I had to jump through hoops. They only thing they said they would accept was if my Dad countersigned the agreement. Totally ridiculous at my age.
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You don't actually need deeds anymore but some mortgage lenders will hold them if you leave a small sum outstanding, the only real advantage is you already have a line of credit if you need to borrow again against the house. We technically owe the Halifax (or whoever they are this week) £125 and they don't charge interest on the money owed. I would say go for it pay it off and use the monthly payments to save for the things you want it mounts up really quickly, and well done for getting into a position where this dilemma is an issue!!
 
Just an update by this time tomorrow we will be 100% Mortgage FREE
 
Your friends in real life might be a little envious that you have managed to remove the millstone so maybe a toast in virtual champagne on here would be acceptable?
 
omega63 said:
Just an update by this time tomorrow we will be 100% Mortgage FREE
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You'll feel the better for that.

No matter who arranges mortgages they all come from the same lender:-

The Albatross Mortgage Company.

Buy a house for £150,000 and £450,000 later you own it.:lol:
 
YEsssssssssssss now 100% Mortgage FREE after 20 years..
 
Congrats :D


arclight said:
Buy a house for £150,000 and £450,000 later you own it.:lol:
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If interest rates remain the same, my £130,000 mortgage will cost me £145,000 over 25 years. Got to love base rate tracker mortgages and a 0.5% base rate...
 
onomatopoeia said:
Congrats :D




If interest rates remain the same, my £130,000 mortgage will cost me £145,000 over 25 years. Got to love base rate tracker mortgages and a 0.5% base rate...
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That's a big "if", Mark.:thumbs:
 
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