Almost paying off mortgage, but keeping alive?

[227bhp]

Is it possible to do this?

Although being a low earner, through saving, not having a wife or kids, having a small house I bought 25yrs ago and granny dying a few weeks back i'm getting close to paying my flexible mortgage off
I'm sure I read somewhere that you can pay it off bar (say ) £1 or something, thus keeping it alive 'just in case'. Have I got this right and what's it called?
Once I know a little more and if possible i'll approach the lender, see about paying it off and direct some money into a paused pension instead.....

[Jockman]

Speak to your lender. See what their criteria are.

[Doofus]

Years ago, it was suggested to keep the mortgage open, so that the bank would retain the deeds, because they still had an interest in the property, and it would save you having to store them securely.

Deeds are electronic now, so there is nothing to store, and therefore no need to keep a small mortgage if you can afford to clear it.

[227bhp]

Doofus said:

Years ago, it was suggested to keep the mortgage open, so that the bank would retain the deeds, because they still had an interest in the property, and it would save you having to store them securely.

Deeds are electronic now, so there is nothing to store, and therefore no need to keep a small mortgage if you can afford to clear it.

I was think of keeping it alive so if I need some funds I can use that.

[CarlosFandango11]

227bhp said:

I was think of keeping it alive so if I need some funds I can use that.

This is what I do - it's makes a useful overdraft facility should I ever need it.

Also paying a monthly mortgage payment may have a positive impact on your credit record - not sure about this though...

[Jockman]

CarlosFandango11 said:

Also paying a monthly mortgage payment may have a positive impact on your credit record - not sure about this though...

I think you may be right. Responsible and consistent repayment of debt.

[Welshbeef]

I'd keep it open as clearly you will at some point choose a newer car or new kitchen bathroom holiday etc and you'll not be able to find cheaper funding.

[Evanivitch]

On the flipside, if you wanted to keep it alive to allow cheap loans, just remember that you would be securing that funding on your home.

Alternatively, just use a personal loan from your bank, it won't be as cheap, but it also won't end in you being homeless.

[MitchT]

Doofus said:

Years ago, it was suggested to keep the mortgage open, so that the bank would retain the deeds, because they still had an interest in the property, and it would save you having to store them securely.

This is exactly what my parents did until recently, when ...

Doofus said:

Deeds are electronic now, so there is nothing to store, and therefore no need to keep a small mortgage if you can afford to clear it.

[Old Merc]

MitchT said:

Doofus said:

Years ago, it was suggested to keep the mortgage open, so that the bank would retain the deeds, because they still had an interest in the property, and it would save you having to store them securely.

This is exactly what my parents did until recently, when ...

Doofus said:

Deeds are electronic now, so there is nothing to store, and therefore no need to keep a small mortgage if you can afford to clear it.

Who needs bits of paper these days? Just pay off the mortgage and live well,its a fantastic feeling being finally mortgage free.
Mind you for me it was a bit of an anti climax.After about thirty years with a mortgage,moving home five times,various lenders,interest rates hitting 15%,(Yes they did).Then the big day comes,its all over and the house is all yours.
All I had to do is click the mouse and delete the Direct Debit.

[TheLordJohn]

Welshbeef said:

I'd keep it open as clearly you will at some point choose a newer car or new kitchen bathroom holiday etc and you'll not be able to find cheaper funding.

Yeah, you're right. £120k over 20 years paying back £185k is definitely 'cheap funding'...

[Welshbeef]

TheLordJohn said:

Welshbeef said:

I'd keep it open as clearly you will at some point choose a newer car or new kitchen bathroom holiday etc and you'll not be able to find cheaper funding.

Yeah, you're right. £120k over 20 years paying back £185k is definitely 'cheap funding'...

No that's not what I meant at all - you clearly need to pay it off in the same timeframe as the equivalent loan you intended - if anyone doesn't get that certainly pay it off and get a loan as and when required.

[superlightr]

Welshbeef said:

TheLordJohn said:

Welshbeef said:

I'd keep it open as clearly you will at some point choose a newer car or new kitchen bathroom holiday etc and you'll not be able to find cheaper funding.

Yeah, you're right. £120k over 20 years paying back £185k is definitely 'cheap funding'...

No that's not what I meant at all - you clearly need to pay it off in the same timeframe as the equivalent loan you intended - if anyone doesn't get that certainly pay it off and get a loan as and when required.

Welshbeef is right - it is cheep funding if you then pay it off as you would have a 'normal ' loan. We did the same, borrowed more but paid it back after a few years.

[227bhp]

Thanks for your replies, not one of them any use
I asked them and it is possible to pay it off completely, but still have it open should I need it.