Is paying it all off really money saving?

PeteB_2000

Hiya,

Ive reduced my mortgage from around 120k to 7.5k....!, in the last 12 months due to ploughing almost all savings into it along with redundancy payment just to keep the roof over our heads, also remortgaged to 35 years....!, just to try to get payment down it was nearly 900gbp per month a year ago, now its a more manageable 47gbp per month with 29years remaining, now obviously we are not going to tak 29 years to pay it off , hopefully the last 7.5 will take around 12 months thats if we do deciede to be entirely mortgage free which now brings me ot my question...................if I did pay it all off dont you then have to pay someone to securely store your deeds?, and isnt this service a few hundred per year?.

Thats the thing Im torn between if im correct, pay it all off then pay for deedstore or leave 1k on it and pay whatever the daft amount is for the remaining 29 years?!?!?

Any advice is appreciated

Cheers
Pete

nearlyrich

I may be wrong but deeds are so last century (Joke) the new system is that your title is registered at the land registry, different rules apply in Scotland and NI.

Seriously we owe the Halifax £25 they securely store our deeds and can rightfully claim that we have a mortgage with them, they don't charge us anything to keep that amount outstanding.
They are the UK's biggest lender, how many of us mortgaged to the Halifax owe just enough to keep the account open I wonder?

Also if we ever need to draw down some cheapish money it should be a simple job to borrow from them against a house that they have surveyed etc.

Hope that helps.

MikeLB

I was under the impression that you can have the deeds released for a nominal sum to keep yourself, as the land registry (or whatever it is) keeps copies in electronic format now anyway, so the value of the paper ones is not as great any more.

Also, do some lenders not let you owe a nominal £100 or so at the end of your mortgage so that you can leave deeds witht hem in deed store?

nearlyrich

MikeLB wrote:

Also, do some lenders not let you owe a nominal £100 or so at the end of your mortgage so that you can leave deeds witht hem in deed store?

That's what our £25 is for so yes Mike you are correct.:beer:

MikeLB

nearlyrich wrote:

That's what our £25 is for so yes Mike you are correct.:beer:

lolol, i was writing the post before you posted but my boss walked in so i didnt get it posted til after you posted!

nearlyrich

MikeLB wrote:

lolol, i was writing the post before you posted but my boss walked in so i didnt get it posted til after you posted!

No problem Mike are you "working" the BH then?

MikeLB

Well lets say 'Attending a place of work' on BH as being the more accurate description!

How recently was it you had the £25 thing with Halifax? I am starting to get close to the end of my mertgage witht hem and havent asked them what the current deal is with letting them keep the deeds in deed store for me?

Broken_hearted

I think being mortgage free is very important, it gives you more freedom and your home is safe.

nearlyrich

MikeLB wrote:

How recently was it you had the £25 thing with Halifax? I am starting to get close to the end of my mertgage witht hem and havent asked them what the current deal is with letting them keep the deeds in deed store for me?

I reckon it's been around 7 years since we paid off the mortgage and I agree Broken Hearted it does give you a feeling of freedom and security.

F_T_Buyer

Or have the deeds held by a solicitor. My parents solictor is holding the deeds for free as they have a will with them.

Maybe look into that?

Joscar

When we paid off our mortgage with HSBC they agreed to keep the deeds for us FOC. Other deeds we have are held by the solicitor who dealt with the purchases - also FOC
No harm in asking. They know you will have to go back to them when you are ready sell, so they are mostly likely to get the business again.