Mortgage broker - ask me anything

LemonadeBudget

@K_S Thank you very much for your time, it is greatly appreciated ❤️

Yorkie1

I'll be paying off my Nationwide mortgage in the next 2-3 months. I've read the NW site about what to do, and that all sounds straightforward.

However, the site doesn't mention the removal of the charge from the Land Registry charges register. Does anyone have any thoughts as to whether NW will usually do that automatically, or is it something I need to look out for and/or chase?

K_S

https://forums.moneysavingexpert.com/discussion/comment/82096257#Comment_82096257

@Yorkie1 Couldn't comment on your specific scenario but when we paid off a NatWest mortgage in 2024, and then downloaded the title register after a few months, it showed as free and clear. Based on that, I'd assume it happens automatically and wouldn't need to be chased, especially with an active mainstream lender.

We also had a land registry alert set up on the property so got an email when NatWest applied to remove the charge. So might be worth doing that so you get an automatic alert.

Yorkie1

Thanks @K_S

I'd forgotten about the alert system. That's a good idea, and I can diarise a check for a few months later to see if I've had an alert and to check the register.

theonenonly

Family home, mum and dad both on mortgage. Interest only (always has been), £50k left. House is valued at around £500k. 5 years left of term.

Dad in his early 60's, been out of employment for a while so has just been maintaining the interest only payments for a while. He'll be starting a new part time job, earning circa £20k.

My questions are,

A) he has very bad credit history, is there any way he can remortgage?

a) extend his term to about 15 years?

b) move on to a repayment plan?

Thanks in advance!

K_S

@theonenonly

A) Depends on what you mean by 'very bad' and how recent it is. For example, have a look at the different adverse levels used by one specialist lender, just to get a rough idea. See 'maximum allowable adverse' here https://www.pepper.money/broker/criteria-guides/mortgage-criteria/

B) Possibly, depends on the lender criteria, retirement age (stated and lender criteria), state pension projections, etc.

C) If the combined income is 20k, it's likely to be really tough to get a lender that will consider lending 50k on a capital repayment basis. If mum has provable income as well (even if it's low), 50k should be doable.

Realistically, one option might be to get as long a term as you can on an I/O mortgage with a specialist lender (who will assess affordability based on the I/O payment), and then hammer away at the principal (using the penalty free annual overpayment allowance) over the term to pay off the mortgage in full over the term.

https://forums.moneysavingexpert.com/discussion/comment/82120102#Comment_82120102