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Why owe £1 on a mortgage and not pay it off?
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Slasher_2
Posts: 21 Forumite
Does anyone have any information as to why my parents owe just £1 on their mortgage and have been advised by the Halifax not to pay this off for many years? Is this a common thing?
I'm concerned because my father has recently been diagnosed with terminal cancer and I am tasked with understanding both my parents assets at this difficult time. The house will go entirely to my mother and I want to make sure there are no problems for her. Why would it not make sense to pay the mortage off in full ?
I'm concerned because my father has recently been diagnosed with terminal cancer and I am tasked with understanding both my parents assets at this difficult time. The house will go entirely to my mother and I want to make sure there are no problems for her. Why would it not make sense to pay the mortage off in full ?
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Sorry to hear about your father.
As I understand it, as long as there is money owed, then the lender keeps hold of the deeds, thus ensuring they are kept safe at little cost to the borrower0 -
Usually because the bank will hang on to the deeds for free on an outstanding debt. Otherwise the charges are pretty high.0
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I'm not an expert but my dad owes Abbey 50 pence on his mortgage and it has something to do with them holding the deeds for him. I'm unsure as to whether he is also charged for the privilege.Slasher wrote:Does anyone have any information as to why my parents owe just £1 on their mortgage and have been advised by the Halifax not to pay this off for many years? Is this a common thing?
I'm concerned because my father has recently been diagnosed with terminal cancer and I am tasked with understanding both my parents assets at this difficult time. The house will go entirely to my mother and I want to make sure there are no problems for her. Why would it not make sense to pay the mortage off in full ?Whoever said everything was possible obviously hasn't tried slamming a revolving door
"To receive everything, one must open one's hands and give"
Taisen Deshimaru
"Kind words can be short and easy to speak but their echoes are truly endless"
Mother Theresa0 -
Thanks for the quick replies, that puts my mind at rest.
Being a member of the MSE Board I'm naturally suspicious of financial corporations!0 -
You probably ought to get answers on whether this arrangement will be allowed to continue after your father's death. Presumably, the debt is in both names, so may have to be paid off. Deeds will probably have to be put solely in her name.
Ugly little complication that they may have a good way to handle for her, but it would be good to ask so you know.I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
not all banks and building societies charge to hold deeds, but I can see the sense of leaving a £1 just to keep the deed with existing lender. Did you ask if they would charge for this service?"enough is a feast"...old Buddist proverb0
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slasher can i just say my thought are with you. my mum was diagnosed with terminal cancer in may and i lost here in october so i know what you are going though.
if you ever need anyone to talk to your welcome to pm me
take care my thoughts are with you
foxyIt is not what you give your friend, but what you are willing to give him that determines the quality of friendship. -- Mary Dixon Thayer0
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