early re-payment

guggsy

i have just received my pension lump sum. i wish to py off the remainder of my mortgage is there any advantages of leaving a small some owing?
i have been told that bs do charge a considerable sum to finish off the mortgae and issue you with the deeds.

viv

Dithering_Dad

They can only charge you a large sum if there is a redemption policy in place on your mortgage. Get in touch with your provider and ask if there is a redemption fee in place and when it will expire.

It could be better to put the money into a bank account and wait for the redemption period to expire.

As far as the deeds are concerned, these are now stored electronically with the land registry so you just need to make sure that they're updated to show that you own the house outright.

There may also be a £50 admin fee for closing down the mortgage.

Best to phone your mortgage provider first and tell them your plans, they will give a complete breakdown of charges.

Congrats on becoming mortgage free (soon) though. I can't wait to join you!!

guggsy

thanks for the advice. i did speak to my bs this morning and they did mention a redemtion policy. they are sending me a quote, so i will wait and see how much i have to pay.

viv

Dithering_Dad

guggsy wrote: »

thanks for the advice. i did speak to my bs this morning and they did mention a redemtion policy. they are sending me a quote, so i will wait and see how much i have to pay.

viv

no probs, happy to help.

When you receive the statement, make sure you check when the redemption period ends (usually at the end of any deal period when you go back to the lenders Standard Variable Rate). As I said, it might just be worth your while holding off paying until the redemption period expires - providing it's not years and years and assuming the redemtion amount is more than a few quid.

Keep us posted, it'd be interesting to see what you get charged.

guggsy

will do. waiting with baited breath for the post to arrive.
hope I can afford to get the old millstone from around my neck.

viv