What happens when I want to pay off my mortgage?

wazza

My endownment policy finishes in Sept this year. My mortgage finishes in Feb 2016. The predicited value of the endownment exceeds what is left on the mortgage. Plan to pay off the mortgage this Sept.

I assume endownment people will send me a cheque. I will then ring up the mortgage people and tell them I want to pay the mortgage off. Do I have to involve solicitors? What happens to the title deeds of the house? Want them to be kept safe in a place.

kingstreet

Is the policy assigned to the mortgage?

If it is, you will complete the discharge forms for the insurer and the proceeds will be paid to the lender. The lender will pass any surplus on to you.

If not assigned, you will complete the discharge forms and the proceeds will be paid directly to you.

You will then repay the mortgage.

In the discharge payment, you will pay the final/discharge fee which will mean the lender pays a solicitor to release the property from the mortgage. The lender will return any old deeds pack to you but these days land is registered electronically so the pack may be only an interesting history of previous conveyances but not the actual proof of ownership.

It should still be kept safe, as it may include any lease and any covenants which still apply to the property.

wazza

The house was remortgaged later so it is not assigned to the endownment.

thanks for the reply :-)

silvercar

Check your endowment provider has your current address.

Our provider wrote to us a few weeks before it matured and said they automatically pay the proceeds into the account that they have been receiving monthly payments from, unless instructed otherwise.