DO you pay all the Mortgage off.

cold_up_north

I am in a position to pay my Mortgage off, do I pay all of it or leave a small amount in the account, what happens to the deeds of the house, the house is in my name, but I would like to put my other half on, how would I go about it.

Thanks.

Rob71

Why would you want to keep the account open - are you in a special deal with an early repayment charge? Pay it off, and stop paying interest.

As for putting your OH on the deeds, just pop along to a solicitor and they'll sort it out - this'll obviously cost you, but I have no idea how much (I had to pay 150 quid to get someone removed from mine, if that's any indication).

I'd wait for the mortgage to be paid off first, and the your mortgage provider will remove their charge on your property and send you a copy of the deeds.

VIGILANT22

[QUOTE=Rob71;29248295]Why would you want to keep the account open - are you in a special deal with an early repayment charge? Pay it off, and stop paying interest. QUOTE]


It makes very good sense to keep a mortgage account open, many will allow this with as little as £1.00, cold up north check with your lender if they offer these facilities......as for adding yr other half to the deeds, both of you should update yr will at the same time....a tick in the box for thinking this way..............:)

LilacPixie

Can I ask why does it make good sense to keep the mortgage account open??

Cold up north - Sorry I can't help really, I know a solicitor can arrange for your OH to be added to the deeds no problem but I would imagine your mortgage lender would also want their name on the mortgage which may involve reapplying for another mortgage and application fees etc. My parents mortgage ended naturally about 18 months ago. Their lender sent them the deeds to their house and they have lodged them with their solicitor along with their wills.

Rob71

LilacPixie wrote: »

Can I ask why does it make good sense to keep the mortgage account open??

I'd be interested to hear the reasoning behind this as well! The only thing I can think of (and I'm probably barking up the wrong tree) is that should the OP want to borrow back the money paid down they can do so without having to faff about with mortgage applications.

Other than that, isn't it the same as keeping an old credit card open? I thought the advice around here was to close them...

supersunshine

Is it something to do with keeping the deeds in a safe place? I am sure I hear somewhere that is was good to keep the mortgage account open as the onnus is then on the bank to keep the deeds safe rather than paying more to keep it in a banked safe. Might be completely wrong though.

PurpleJay

Hiya

I know my parents kept their mortgage account open some years so that the building society would keep the deeds.

After a time, they stopped offering this service and their solicitor held them instead (I don't know if they charged for this).

Nowadays, property is registered with the land registry so this is no longer an issue. There is no longer the requirement to keep all the historical documents once the property has been registered as they are checked by the land registry on first registration. We keep ours out of interest and then passed them on to the buyer informally with our old house.

If a property hasn't changed hands for ages, it could still be unregistered so you would need to check. It would probably have to be registered to put your OH on anyway (not sure..).

If it is registered, I can't see any benefit to keeping the account open.

chirpchirp

One reason to keep a mortgage account open is if you have a good deal. I currently have a flexible mortgage which allows me to borrow back overpayments and is also a tracker. Who is to say whether trackers will exist in the future? Will they track at .99% above the BOE rate. It may be that in future years I want another mortgage. So if I was to be so lucky as to to get my mortgage account low, it may be worth my while paying interest to keep the account open in order to save hassle and to get the benefit of a low interest rate.

Mortgages are generally much lower than normal loans so I may find it's a good way to buy a big purchase ticket such as a car.

miss_undastood

Sorry for hi-jacking and asking a relatively dim question. I'm years from clearing my mortgage, but trying to overpay as much as i can.

Chirp - are you saying that if I clear my mortgage to a nominal amount in the future I'll be able to take a futher advance at the same rate (rather than the existing rates at that time)?
If so then that's brilliant

chirpchirp

It would depend on your mortage. Mine is flexible for the lifetime of the mortgage so I will pay .99% above the base rate and then I can draw down my overpayments whenever I need to. You need to check your mortgage conditions to see if you would benefit in this way.

miss_undastood

Hmmm, my mortgage is 0.89% above base rate, I can make unlimited overpayments but I can't find anything that says whether I can or can't draw down on them at a later date.
Maybe I should call them tomorrow.

I'm with Woolwich if anyone can help?