Marathon runner needs some help over the last hurdle...

Kelvin01

Hi,

Can anyone advise? Like some others, I thought of my mortgage as a 25 year marathon. I didn't realise that you could overpay/reduce the term etc.

So several years after my light bulb moment (thanks Martin for the overpayment calculator & MSE posters), with much work, I hope to be in a position this autumn where the balance of my interest only mortgage is less than the redemption value of my endowment.

So I'm aiming to redeem/sell the endowment and use this to pay off the mortgage.

Does anybody have any advice on what I need to do, consider and what the correct procedure is?

Thanks,
K

Kelvin01

Here's what I've found out, and although the information relates to Santander, other banks may have similar procedures.

When ready, I phoned and asked for a redemption statement. When it arrived, the final amount was valid for 7 days from date of issue.

Information on paying off:
On-line, via BACS, there is a £10k daily limit.
For larger amounts, via your bank/building society through CHAPS transfer. It can cost c£30, depending on bank.
Allow 6 working days for a cheque to clear.

On the redemption statement, there were instructions on the final procedures. In England, once your mortgage has been repaid, the bank (Santander) will let Land Registry know electronically and ask them to remove the charge on your property. Otherwise their (the bank's) Deed's Department or the conveyancer will send a DS1 form to the Land Registry.

In Scotland, Northern Ireland or the Isle of Man, you'll need a Solicitor. There was a tear off slip on the Redemption Statement, which you can complete with your preferences, and space to include your Solicitors details, if required. The Solicitor will prepare the discharge documentation and will send this to the bank (Santander), to enable the charge on the property to be removed. The Solicitor will then send off documentation to the appropriate authority, e.g. RoS, Registers of Scotland. In Scotland, there is a c£60 Keepers charge to ROS and (dependant on Solicitors), it can cost c£150 all in.

Hope this helps!

Best of luck, and today we post in the Mortgage Free Role of Honour!