DO you pay all the Mortgage off.

Jonbvn

supersunshine wrote: »

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.

Not true anymore. Deeds are held electronically by the Land Registry.

jamesd

Keeping the mortgage going is worth it to get the regular positive marks on your credit record and to keep open a borrowing facility so you can use it instead of say a car loan and/or get better remortgage deals if you move to a more expensive place. Other than 0% credit card deals or student loans a mortgage is just about the cheapest way to borrow there is and it's worth keeping that ability around.

laurasavon

I used to work with deeds and unless your house is really old your deeds will be registered at the Land Registry and are in effect worthless. I have a new buld house and my 'deeds' are 2 pieces of paper. Also, lenders no longer require deeds for new mortgages (unless the house is in Ireland as their Land Registry is different). To get a copy of your deeds would got you £3 from the Land Registry so not really worth keeping the mortgage open for that reason.

Also, if the mortgage is in your sole name most lenders will not allow another person to be named on the deeds as if you were to default on the mortgage the other person would still have a right over the house and the lender wouldn't be able to reposses.

cold_up_north

Thanks for all the reply's, Laurasavon, if I pay the Mortgage Off, and the deeds have not been registered at the Land registry, ( I had to register the land over to me when I bought the leasehold ) can I register the property in both names or add on my oh if registered. Thanks

Harry_Powell

If people have 0.89% and 0.99% BoE lifetime trackers then I'd have to say that they were insane to overpay their mortgage. You will always get better savings rates that beat your mortgage rate, so instead of overpaying and LOSING money, simply put the overpayments into a bank account.

I just can't understand the mania on here for mortgage overpayment apart from those people who are trying to increase their mortgage LTV in order to get a better mortgage rate. Everyone else is simply throwing money away.

It just seems to go against everything that this MONEYSAVING site stands for. I know that often the saving is only a few percentage points between savings accounts and mortgages, but when you're talking 10's of thousands of pounds, these few percentages really mount up.

Everyone seems so clued up about mortgage pigs, credit card stoozing, pigsback and 'clicks for cash' sites and getting bank accounts that pay the highest rates; where they get small rewards that add up over time, yet they then lose out on all of these gains by then paying the cash directly onto the mortgage rather than saving.

I just don't understand it. Sorry.

laurasavon

I believe if you want to make any amendments you would need to have the property registered if it isn't already (they majority of properties will be registered).
It would probably be worth giving the Land Registry a quick call as they will be able to advise you.

co123456

Harry_Powell wrote: »

If people have 0.89% and 0.99% BoE lifetime trackers .........

I just don't understand it. Sorry.

Most people don't have these deals and find themselves on a relatively high 4.something fixed rate, or on the lenders' SVR. Unless you're looking at investing in something like the stockmarket, it's unlikely that you would cover the cost of your mortgage interest. If you have a sub 1% rate, enjoy the low base rate whilst it lasts.

Ed_Zep

Pay it off except £1, especially if on a good rate. Then you've got easier access to another loan. Lenders seem to be quite happy with this situation.

If you pay it off and it's a good rate the next deal you get may not be so good.

co123456

It's up to you.... which is a nice choice to have!

a) Keep a nominal £1 balance, or
b) pay the whole lot off.

I've opted for 'b' and I didn't have any savings. There's no wrong or right way.
The reason for my choice was that I have access to 0% credit at the moment should my boiler/car blow fail, but realy, the main reason was:

I wanted to move away from the reliance on credit. I'd been in mortgage debt since 2002 and wanted to feel that I owned my own home, right down to that last £1. I don't want any more loans. I wanted a rocket up my @rse which will push me to save the emergency fund, and there's a real incentive to save by removing the idea that you can fall back onto the mortgage.

Jonbvn

cheeryoleary wrote: »

a) Keep a nominal £1 balance, or
b) pay the whole lot off.

I've opted for 'b' and I didn't have any savings. There's no wrong or right way.

IMHO, overpaying the mortgage and having no savings is too high risk (for me anyway). What happens if you lose your job or you are ill long-term?

I would generally agree that overpaying a very low rate tracker mortgage is a poor idea. More MSE to save the money instead. However, I know that people overpay for reasons other than financial, which are perhaps beyond the scope of this website.