Paying Off Mortgage

gerri2011

Hi, I am about to pay off a mortgage and the funds are coming from the sale of my elderly mother's property.  We built her an annex on our property years ago and required a mortgage to do so. The sale proceeds will go into her bank account.  My question is will there be any problem if she then pays our mortgage balance from her bank account? 
Thanks in advance   

davilown

I’m not too sure but deprivation of assets (if she needs to go into a home) and inheritance tax potentially? I suppose it all depends on the figures. That said, you built the annex for her to live, and used all the funds from that mortgage to do it?

davidmcn

What sort of problem are you worried about? The lender isn't going to care who has made the payment.

MWT

Easy enough to prove when the money came from if you ever had to, not that it is likely the lender will ask.

Whatever problems you or she may have are more likely to come from other sources and may be related to the reasons why she is paying direct to the lender not to you and then you paying your lender...

MovingForwards

https://forums.moneysavingexpert.com/discussion/6140482/mortgage-payment#latest

Same answers as when you asked a few months ago in relation to your dad.

MWT

MovingForwards said:

https://forums.moneysavingexpert.com/discussion/6140482/mortgage-payment#latest

Same answers as when you asked a few months ago in relation to your dad.

Thought it sounded familiar...

gerri2011

davidmcn said:

What sort of problem are you worried about? The lender isn't going to care who has made the payment.

Davidmcm not sure these days if there are limits in how much can be sent from a bank account to a payee. 

gerri2011

MovingForwards said:

https://forums.moneysavingexpert.com/discussion/6140482/mortgage-payment#latest

Same answers as when you asked a few months ago in relation to your dad.

Yes MovingForwards I want to make sure there will not be problems for myself or mother if she transfers funds from her bank account directly to my lender. My father passed away a few months ago.

davidmcn

gerri2011 said:

davidmcn said:

What sort of problem are you worried about? The lender isn't going to care who has made the payment.

Davidmcm not sure these days if there are limits in how much can be sent from a bank account to a payee. 

No, there aren't. Mortgage accounts are routinely paid off by sending a single lump sum, that's what happens every time you sell or remortgage. 

MWT

davidmcn said:

gerri2011 said:

davidmcn said:

What sort of problem are you worried about? The lender isn't going to care who has made the payment.

Davidmcm not sure these days if there are limits in how much can be sent from a bank account to a payee. 

No, there aren't. Mortgage accounts are routinely paid off by sending a single lump sum, that's what happens every time you sell or remortgage. 

That's not strictly true, if you use an online banking facility for example, some banks do have quite low limits on the value of a single transaction.

Most mortgage related transfers between lenders and solicitors will use a wire transfer and most customers do not have access to that facility online so a visit to a bank can be required.

So yes, you can transfer funds without limits, but not always without a visit to a bank...

davidmcn

MWT said:

davidmcn said:

gerri2011 said:

davidmcn said:

What sort of problem are you worried about? The lender isn't going to care who has made the payment.

Davidmcm not sure these days if there are limits in how much can be sent from a bank account to a payee. 

No, there aren't. Mortgage accounts are routinely paid off by sending a single lump sum, that's what happens every time you sell or remortgage. 

That's not strictly true, if you use an online banking facility for example, some banks do have quite low limits on the value of a single transaction.

Most mortgage related transfers between lenders and solicitors will use a wire transfer and most customers do not have access to that facility online so a visit to a bank can be required.

So yes, you can transfer funds without limits, but not always without a visit to a bank...

Yes, I'm aware of those - but there are no special rules associated with transferring money in order to pay off a mortgage, which I presume is what the OP was wondering.