Should I pay off all mortgage or leave £1,000?

SophieJB

Can an expert please advise whether I should pay off all of my interest only mortgage, which has three years to run, or leave £1,000 sitting, thus leaving the deeds in a safe place?

If I do pay off all of it (for which I have the money saved) I would keep the life assurance running.

Where is a safe place for the deeds to be stored? What have others done with their deeds once the mortgage has been cleared?

I would be grateful for some replies of what others have done re. paying off all/part of mortgage!

Thanks.

gaetss

Our solicitors have the deeds. We have paid like £30for them to keep the deeds.

MarkyMarkD

Generally speaking, deeds don't mean anything any more so there's no point in leaving them "in a safe place".

The Land Registry keep an electronic record of who owns each piece of registered land, so as long as your title is registered (and most are, unless your property is hundreds of years old) you don't need the deeds.

SophieJB

MarkyMarkD wrote: »

Generally speaking, deeds don't mean anything any more so there's no point in leaving them "in a safe place".

The Land Registry keep an electronic record of who owns each piece of registered land, so as long as your title is registered (and most are, unless your property is hundreds of years old) you don't need the deeds.

Well I never knew that! I thought deeds had to be kept somewhere safe like the bank.

So is there any need or advantage in keeping a small amount (£1000 or so) of the mortgage going or should I just clear the lot?

Thanks

MarkyMarkD

This website: http://www.movingahead.co.uk/newsletter2004/into_thin_air.asp talks about the dematerialisation of deeds, which is the process I was talking about.

Therefore, there's no reason to keep £1,000 outstanding JUST for the security of your deeds.

Some lenders would suggest keeping a nominal amount on your mortgage because it will be easier to take a further advance from them, should you ever need it in future. But if the chances of that are slim, there's no real reason not to redeem IMHO.

SophieJB

Thank you so much MarkyMarkD for your help.