Paying off mortgage early?

[mexico07]

Originally Posted by disneywiseowl

Sorry, I don’t know as previous posters say it’s all done digitally now.
I’m sure someone will post better advice. Lol.

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Thanks , I replied to you and then read on and saw the advice from others , but thanks anyway it’s something I hadn’t thought about xxx

[mexico07]

Originally Posted by FamilyGWales

What a horrible journey you have had. I read about the mortgage prisons on moneysavingexpert. Sounded horrific.

Glad you have found your get out of jail card. 👍

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Thank you xxx

[hermione25]

We paid ours off last week when I received a letter telling me the new savings rate for my ISA - it made more sense to use it to pay off the mortgage.

Rang mortgage company and gave them exact date I wanted to pay it off (to give me a couple of days to transfer funds). They wanted to confirm where the funds would be coming from to cover themselves regarding the money laundering laws, then sent out a redemption letter.

I initially tried to do a bank transfer but it was above the allowed limit, so rang Santander who quickly did it over the phone, once they’d confirmed I had initiated the payment and had requested the settlement letter so they knew I wasn’t the victim of any scam.

Job done, there are no other fees incurred eg admin or 3rd party such as solicitors. Our mortgage company will contact the land registry to inform them no mortgage is held on our property and our deeds are held with them electronically.

[400ixl]

Ah, Scotland is different I believe, so ignore what I posted.

[bighal]

Originally Posted by FamilyGWales

Curious about the all but 500 comment. If you reduce it down to that level what is the benefit of doing this over paying it off fully?

Sorry to hijack OP!

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I think in the past you had to keep the deeds yourself somewhere safe which usually involved paying to keep them safe whereas keeping a small amount on the mortgage meant the mortgage lender keeps them and you pay nothing. Also I think it may help if you want to remortgage at a later date.

Saying that it's probably all changed!

[400ixl]

Most deeds have been digitised so the paper copy is just novelty value now.

You can check the status for English properties on the land registry site. Not sure about Scotland.

Once you pay off the mortgage the provider releases the hold they have with the land registry. You get a letter when this is complete and then the property is yours.

Little point with digitised deeds to keep a peppercorn mortgage any more. If they haven't been digitised then maybe.

[disneywiseowl]

OP - don’t forget the champagne for the day you’re mortgage free!
🎆🥂🎇

[shauney]

I just rang online banking, asked for a settlement figure and asked the operator to do the transfer there and then.

I wanted a five year mortgage (I only borrowed £45k as had a large deposit to put down), the bank told me I couldn't afford it and had to take it over ten years. I settled it in three years. Glad I got it paid off as i'd be up the creek now if I hadn't.

[YorkshireT]

You don’t need deeds it’s all on the Land Registry.
Mexico sorry to hear of the s***y journey you had with your mortgage!

[rhyger]

We paid ours off over the phone. Asked about deeds, they had been securely destroyed as were electronically held on Land Registry. I was so cross as no-one had discussed this with us and our house is of local historical interest so I would have liked the deeds. We then paid £6 I think, for the electronic deeds which is only an OS type map with a red line around your property- very underwhelming.