5 years on and I am nearly there!

alex_p

Done the budget and worked out the finances for 2011!

Saving up for the next overpayment currently and should be able to overpay a bit in the next 2 weeks.

amancalledmartin

That's a phenomenal result - £150k in 4 years is pretty amazing. Well done!

alex_p

So I enquired what fees are applicable when you complete the mortgage and the Bank explained that it costs £295 if the last payment is over £10K or £195 if the payment is less than £10K.

I asked why anyone would pay an extra £100 if they can just make 2 overpayments and they could not explain it? Has anyone else seen this?

Also, I have read that some people keep a very small amount outstanding and continue to pay tiny amounts each month and do not close the account. Please can someone explain the advantages of doing that?

SmlSave

Just popped on to say well done on your upcomign MF date!

The reasons I know of people keeping a small amount on their mortgages is

1) You may have your original Title Deeds stored at the bank and wish to keep them there.
and
2) It gives you the option to remortgage a bit more easily to borrow more should you move house or ned the equity for some reason

alex_p

Thanks SmlSave.

1. Why is it good for the Bank to hold the Title Deeds? What happens if I get the deeds and then lose them? Can I get replacement ones?

2. Does it not mean that you will keep paying interest on the small amount for remainder of the term?

SmlSave

1. If your property is registered at the Land Registry then generally they have copies of all the important documents and you can get copies from them. If your bank holds the Deeds they can charge you for giving them back to you! The solicitors I work for store Deeds for free for existing clients so there are alternatives.

If the worst happened and you lost your Deeds and couldn't get copies then there are indemnity policies you can buy when selling/buying to cover yourself/the buyer. It can make selling more difficult/expensive though as its more hassel.

2. Some banks agree not to charge interest on a certain amount or if you take out insurance with them. It's worth having a word with your bank.

hope this helps I'm only a secretary so I pick up the info second hand as it were and could be mistaken.

alex_p

Thanks I guess the options are:

1) pay the fee
2) leave minimum small amount each month until the end of the term
3) pay the fee and try claim it back

However since I took my mortgage out in 2006, the fee was stated at that point as £295 and has not changed. Does that mean I cannot claim it back?

Also if I do 2) does it mean that I will STILL have to pay the fee once the mortgage finishes the full term?

Thanks in advance.

alex_p

Made another £4k OP! One step closer!

:beer:

originalmiscellany

You should be mortgage free by the summer - what a great feeling that will be. What are your plans with all your money once you've paid off your mortgage?

rlc22

Wow - I've just read your thread and am really impressed with your achievements - good work!

As much as I'd love to be mortgage free by 30 it wouldn't work as I've only got 2 days left :rotfl: