Is it worth keeping a very small mortgage

herbsmithherbsmith

I recently paid off most of my mortgage but have kept a debt of £400 outstanding with very small monthly payments.
Is it worth doing this so that the bank keep the documents safe, or are there no documents in any case as the house is registered with the Land Registry?

BillTrac

I don't know if it is cost effective to do it this way, or whether there are other services which can provide secure/safe keeping of documents for a small fee.

There certainly is paperwork, when we re-mortgaged 5 years ago from Abbey to Nationwide our deeds etc, just turned up in the post! The pile of paperwork is over two inches thick. Maybe because the house is over 120 years old, and includes everyone who has purcheased the house from the beginning. If nothing else it makes very,very interesting reading.

There is another thread on here about someone buying a house where the sellars have "lost" all the deeds, and it does cause misgivings with several of the responders to the original post.

Sorry I can't be of more help.

Bill

stagey_2

I have a similar question about keeping a small amount outstanding on this forum but no response yet so I too would be interested to know whether or not this it is worth doing - perhaps if one wanted to get a loan in the future? thanks

DawnW

I am not sure if this is any help, but when I bought a house recently, I was sent a pile of paperwork inches thick (old house again) even though I still have a mortgage outstanding on it, because the lender now does not keep it (apparently, according to the solicitor). Presumably they still have something that refers to my purchase of the property. I don't know whether this is a relatively new development, or pertains just to this lender, but as a previous poster has said, it makes for interesting reading, as it goes into great detail about previous owners of the house and the land it was originally built on. To be honest, I just keep it in a drawer, but wonder if I ought to do something more secure with it.

BillTrac

DawnW,

at the least do what I did and get a fire-proof safe.Every little helps.

Bill

Tiddler_2

As far as I'm aware, provided the property is registered with the Land Registry then all the relevant information is now computerised and hence the reasons why the paper based deeds are being returned when you remortgage/buy a property.

There are some properties that are still unregistered but would be registered on the next transaction (sale/purchase/remortgage/transfer of equity)