mortgage free

ruthraff

I am in a position to pay off the final bit of my mortgage but now my lender has said I am better advised to keep a little mortgage as then they look after the deeds. I would love to get rid of the debt, my only one. All advice welcome. Thanks :j

mummyofonechild

If it was me I would pay it off

welshlady33

Pay off your mortgage, Land registry hold copies of deeds so you do not need your paper ones.

ruthraff

Thanks Welshlady you have just made someone VERY happy!

Jonbvn

welshlady33 wrote: »

Pay off your mortgage, Land registry hold copies of deeds so you do not need your paper ones.

I used to think the same, until I read this article from the BBC (transcript of a TV program).

http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/31_03_09_fo4_homes.pdf

LoopyLil_2

Ruth, I would get rid of it! To be free of that millstone at last, eh?



(You know what, when we changed our mortgage a few years ago, we were given our deeds by the mortgage company and a note saying that they didn't have the facilities anymore for storing deeds. ?? :undecided We had never heard of this being done before!)

McKneff

They tried to talk us into just leaving £1 in but no thanks!!

I paid off my mortgage with a lump sum cheque and the wonderful feeling walking outa that Halifax branch door was just awsome.

Go for it, you can at last say 'I'm mortgage free':j:j

annie

IHateDida

McKneff wrote: »

They tried to talk us into just leaving £1 in but no thanks!!

I paid off my mortgage with a lump sum cheque and the wonderful feeling walking outa that Halifax branch door was just awsome.

Go for it, you can at last say 'I'm mortgage free':j:j

annie

My Dad has left £1 on his mortgage - has done for the past 30 years. The mortgage company keeps his deeds free of charge for this - I don't understand why this isn't a good idea? It has saved him paying somewhere secure to keep them for the past 30 years? (and I will go down this route in a million billion years time when mine is finally paid off...apart from the last £1 of course!:D).

McKneff

But the deeds are just peices of paper.

All details are electronically kept at the land registry.

Know where mine are, in a brown folder along with my will (original at solicitors, stored free of charge)
all tied with a pink ribbon.

I suppose its all psycholigical, if you owe a £1 you still have a mortgage and if you dont owe this £1 you are at last mortgage free.

Annie

moneysaymoneydo

Deeds are now electronic so pay off that £1 then its all yours :j

snowmen

I asked a similar question in a previous thread.

I agree that paying off your mortgage in full is great, but the responses I got were that if there was a chance you might need to borrow again, for example to pay for an extension to the house, then keeping a £1 in the account was a good idea as it allowed easier access to borrowing. You won't need to go through so many checks and may be given access to better rates as an existing customer.

Depends what your preference is really - if you know you are never going to have to borrow again then pay it off, if there is a chance then leave a nominal amount in there to keep your options open.
I bank with Nationwide and here is a link to a page on their website - scroll down to "nominal balance information".
http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1048