how do you pay off mortgage?

sorayascot

Hi there, apologies if this is an obvious question. I've been made redundant and my DH & I can just afford to pay the morgage off. If we do that the pressure to try and get another job reduces a bit.

I have contacted the company and they have sent us a statement, but the money is only just enough. Is it just a case of sending the company the money or do we need to use a solicitor as we did when we bought the house? We could do with not spending more than is necessary and the solicitor was not cheap when we bought the house but don't want to take any risks.

Been wishing we were morgage free for years, but this isn't quite how we hoped to do it!

Radiantsoul

Ask for a redemption statement as at a certain date and send them the money on that date.

katsu

You don't need a solicitor but you need to find out if the mortgage company will make any additional charges for you paying off the mortgage (say an ERC if you are in a deal period), as that may affect your decision.

sorayascot

Hi everyone

thanks for the replies.

there is no early redemption charge as our fixed deal came to an end and we're now on the standard rate.

We are trying to balance pay off the mortgage with getting another job. If we bring pay off then we can just manage and wait until a decent job comes up. But we could just use the lump sum to top up each month - which if the interest rates rise will be necessary.

I'm just aware that you rarely have a lump sum to 'spend' and this may be the only time we can achieve the peace of mind of being morgage free.

BFM

i'd keep 3-6 months of living costs to one side though (that will obviously be a lwer amount than it is now if you take your mortgage right down). you don't want to swap low apr mortgage debt for high apr c/c debt if you can help it while looking for new job. if you get a new job quickly would assume you would be in a good position to clear the remaining mortgage superfast anyway