Paying Mortgage off early

applemac2013

We have decided to cash in our endowment policy, to pay off our mortgage early.

Someone mentioned to me that we can leave a little amount owing, so as to get out of paying the bank fees for paying early and also to hold our deeds with the bank which incurs a yearly fee.

Has anyone any experience with this.

thanks

hamster2013

1. completion fee's are depending on your mortgage offer - check it and see what the fee's are.... you will have to pay then ONE day eventually... i dont see much logic in not paying off mortgage to 'save' that fee... it should not be much, the last offer i saw was in the region of £200.

2. we are now in the electronic age.... the paper deeds are no longer as valuable assets as they used to be considered.
you don't need them stored in a super secure location - and there is not much need to pay any fee for their storage - it would be worth keeping them safe depedning on how old your house is, and how much detail there is in it (re covenants for example).
you can buy a fireproof safe and store your deeds in those for security.

if property is registered with land registry - solicitors will not require deeds unless queries arise - and worst case scenario, an indemnety policy can be drafted if they cant be located - would cost you around £300 at that stage.

belt_and_braces

Agree with hamster2013.

When I paid off the mortgage on my first house the lender sent me my "deeds". It was a 1930s house and there was quite a lot of information enclosed relating to previous sales, mortgages and conveyances. And there were some fancy documents with wax seals.

I was of the understanding that anything important was stored electronically but to be on the safe side I had planned to get a fireproof box. However, I never got around to it - they just got shoved in a cupboard.

I was never asked for them when I sold the house a couple of years ago. The buyer's solicitor seemed to have all the information required. I just left them behind in the house.

I didn't receive anything fancy for my current 1970s house - just an official copy of the register of title and a small pile of old conveyancing papers. I don't think anyone dares throw any of this stuff out - I'll just pass it on to the next owner.

applemac2013

My friend had mentioned that he left £500 on his mortgage and only pays £1 month avoiding and early payment fee. Bank didnt mention any completion fees.

Kaz2904

We cleared our mortgage a month ago and only had to pay £130 for it to be discharged. We were no longer tied in to our mortgage deal so had no redemption penalties to pay. It's worth asking them for a redemption figure as they will provide one for free which you can then either redeem or continue paying.