Pay Off ALL of mortgage or leave a little?

picklesthewonderdog

I have luckily got the cash to pay off my mortgage (once the early repayment fees on the fixed rate run it in one month) but am wondering if I should keep a small amount so that the bank keep the deeds etc?

Any views?

jitsuguy

I know of people who do this and pay as little as 10p a month so that the back keep the deeds. He seems to have something going on with the bank! You could save wuite a bit by letting the bank look after them.

nearlyrich

Deeds are not as important as they used to be now all property in England ( not sure about all other parts of the UK) is registered in the Land Registry.

We left £150 outstanding with the last Mortgage lender we used (Halifax) they said we could draw down if we needed to with no extra hassles or paperwork to deal with and they looked after the deeds. We don't pay anything back and it doesn't attract interest.

molerat

We currently have 50p :cool2: with Abbey. They keep the deeds FOC but have not paid any redemption charges yet, which of course usually increase each year. Not sure really if it is worth it but it is not really costing me much

alanobrien

I have to admit i never understand why people want to allow a financial institution to continue to own part of their property because that is in effect what you do by allowing them to maintain an interest in it.

I can see the convenience of deed storage and possible convenience for additional borrowing later etc.

The overriding thing for me would be to remove any charge reference on the house registration. I guess its a personal thing but after having a mortgage for years i want to see the back of it

skid112

paid off mine in full last Decmeber wanted to leave £1, but the Woolwich no longer offer the facility, so went and bought a safe and every now and then look at my deeds and laugh!!

temba

Gosh, I got my deeds when I bought my house (2003), despite having a mortgage with the halifax. I never really thought about the deeds, since they told me that they don't really matter any more as everything is becoming electronic. I am interested in them in a historical way as my house is over 100 years old, but I didn't ever consider that perhaps I should have them in a safe?!

They are just in my filing cabinet....... should I be putting them somewhere safer than that?

regularsaver1

Some people leave a small balance just in case - so that if did need to borrow money againt house later it can be done as a further advance as there is still a mortgage account number, rather than have to involve solicitors and valuers in raising money on a mortgage free property

nearlyrich

alanobrien wrote:

I have to admit i never understand why people want to allow a financial institution to continue to own part of their property because that is in effect what you do by allowing them to maintain an interest in it.

There is no charge on our house, I checked on the Land Registry website, I suppose they think we are good for the small amount of money we "owe".;)

Touche

My dad paid his mortgage off over 10 years ago, Barclays are happy to keep the deeds for nothing. They said if he ever wants a secured loan to let them know... haha! They hope the convenience of already having the deeds with them will mean he goes to them first should the need for a secured loan ever arise in the future.

Andyboy

Places like the Halifax like to keep the mortgage open as they can then say they lend to more than the next bank/building society and are the biggest.

If your land is registered at the Land Registry you have a guaranteed title and strictly do not need your deeds but I would always have them even if it is for historical info. Just keep them in a safe place but don't worry too much about them......rejoice in the fact you have no mortgage and enjoy the freedom!

I would be more concerned that a lot of people seem to lose track of their insurance when mortgage paid off and suddenly don't take out buildings cover...beware please!