Avoiding Mortgage Settlement Fees

lawryleslie

To pay off your mortgage or when you come to the end of the mortgage term and you are paying your final installment banks and building societies charge anything between £500 and £1000 to close the account and return your property deeds. Here is one way to avoid this scandalous charge. It will only work if you are moving house to down size and you are paying off your mortgage.

1. Go through the normal rigmarole of applying for a new mortgage offer on a new property with your existing lender. Most lenders will waive the mortgage final installment fee if you intend to take out a new mortgage with them.

2. Lenders will give you 6 months from selling your existing property and buying your new property without having to re-apply for a mortgage offer.

3. Sell your property and buy a new one for same price or downsize. Lenders have to release deeds to your solicitor.

4. Pay the lender what you owe and don't mention the new house.

5. Thats it they think you are still looking for a property and await your solicitor to apply for the agreed mortgage. Of course this never happens and you have paid off your mortgage without any closing fees. Simples. I did this 5 years ago and saved £500.