Free Deeds Holding Service - any catches!!!!

benny5

Just completing the final stages on redeeming my mortgage and the Building Society have offered a 'Free deeds holding service'.

Basically they continue to hold a charge on the property with the option of making further borrowing at some stage in the future without incurring solicitors fees.

Does anyone see any flaws with the option.

david29dpo

sounds a good idea and a lot of people do this to make further borrowing easy. are you paying all the mortgage off? if so, how can the BS have a charge on the house? most leave a pound or two owing.

MortgageBroker_2

Agree with last post. Mostly the lender leaves a £1 or 50p as a notional debt that the charge is associated with. No payment due obviously. Makes applying for a further mortgage with this lender easy but more difficult if you wish to borrow from another Co. Keeps the house deeds nice and safe

benny5

Thanks for your responses and just to provide some additional information, we have paid all outstanding balances due.

This is an extract from the BS (Coventry) Terms & Conditions associated with what they describe as a 'Home reserve scheme'.

'Your mortgage account will be transferred into the scheme, for as long as you remain in the scheme the society will retain its legal charge on your property'.

It then goes on the state that future borrowing will not require a solicitor and you can opt out of the scheme at any time.

Is it still a good idea???


Regards

Benny