Hello, I wonder if anyone can advise on what the best thing to do is in the following situation. I am about to come to the end of my fixed rate mortgage term and intend to chip off the last 10k from savings. I understand it is advisable for a number of reasons to leave a few pound left on the account. The reasons for this I have been led to believe are for potential future raising of funds through the same mortgage company without paying extra fees; so that the mortgage provider can retain and thus protect the security of my deeds, essentially free of charge and should any windfalls occur with my provider (not in this case though), mortgage holders may benefit. In light of these points, how much money is it advisable to leave owing on the account? 50p, 1, 100?
I also have two life insurance policies with Legal and General which cover critical illness and life cover (decreasing term). As the mortgage will be paid off early, do these types of policies "in general" still cover the amount the mortgage would have been worth or what is actually left? I asked L&G by phone, but was rather unconvinced of their support assistant's abrupt answer...They said the decreasing term life cover would continue to cover the amount the mortgage would be worth had we not paid it off early, but I can't see it being that easy should you need to claim. Call me skeptical!