I want to pay off mortgage, at lowest amount.

workingboy

Ok. I shall shortly be in a position to pay off my Mortgage.

Are there any ways or tips of getting the outstanding amount due, reduced.

Such as, do you think a Mortgage lender would be tempted in reducing the final amount to close the account, or do you think, as always they will try and get as much as they can.??

Are there any proven text/format of asking of such a reduction.

thanks

tanith

I hardly think so, the longer the account is open the more money they earn in interest... what possible advantage would they get to close it early?
You may even have to pay them an early payment penalty.............
Maybe if you offered them extra they might consider it......:T

Dithering_Dad

I'm with Tanith, what possible motive could your mortgage provider have for negotiating the repayment amount of your mortgage?

This happens with credit cards and other debts, but only if the debtor is in such a financial state that s/he clearly has no way of repaying the debt in full and no assets to grab, so they're happy to get at least some of their money back (and usually a lot of the debt is interest they have added on over time anyway).

In your circumstances they would demand full payment and if you refused, they would resort to legal action as you obviously can pay.

angelavdavis

Remember, at the end of the day, a mortgage is a loan against a property that is under the ownership of the bank - not you (hence they keep the deeds).

Therefore, the bank, rather than you owns the property until the loan is paid off, so if you stop paying - they simply take it back again.

RufusFrog_2

To clarify: no the bank doesn't 'own' your house. It registers a 'charge' on the title (a loan which must be paid off first if the house is sold). Your ownership is registered electronically - I think the banks still keep the bundle of papers because they always have, to protect the record of that 'charge'.

But as everyone else has said, they have no reason to negotiate on the capital they have lent to you - only the interest rate is up for haggling.

BindiBahji

workingboy wrote: »

Ok. I shall shortly be in a position to pay off my Mortgage.

Are there any ways or tips of getting the outstanding amount due, reduced.

There was a thread a few months back where someone managed to get their lender to waive the exit fees (MEAFs) by paying the mortgage balance down and leaving just a small amount owing (a search might find the thread).

If you only owed your lender say £50, then the interest they would earn from you in a year (£3 at a rate of 6%) would be far outweighed by the admin costs of running your account. In the case I mentioned above I believe the lender actually wrote off the small amount owing as well as waiving the exit fees because it made financial sense for them to do so.

rizla01

Erm. My DD was having priobs with her Mortgage payment and was getting deeper in the red.

After a while I contacted the Mortgage Co and said that I would pay off the mortgage, but i only had 'x' amount available (Close to the final figure, of course) they accepted the lesser amount (About £2k less) to clear the debt.

Maybe that'll give food for thought?

Go into debt and get FIL to pay mortgage off for you?
Just a thought.:)

workingboy

Thanks for your replies.

My next question would be:

Would I need the services of a Solicitor to close the account with the lender or is it just the case of paying them off and them giving me all the documentation, deeds etc.

Dithering_Dad

I think you just pay them off. I don't think there are deeds anymore as such. It's all on computers. I should give your lender a call and see what they say, they must do this practically every day.

keeperbear

You ask your mortgage company for a settlement amount, and then pay it off. They will then remove the charge on your property (at the Land Registry)and send you the deeds. May cost you around £100 in fees, but is a great feeling. I paid my mortgage off a few years ago and love knowing that there is no charge on my property.