2022 Frugal Living Challenge

HelenaPinky

I am mortgage neutral but have withdrawn savings to pay off mortgage completely--final date is 1st October 2022. I will be better off in the  end

@G@gill5blue a lot of forumites advise on the Mortgage Free forum to not pay off your mortgage completely, leave a little in there. Something about the bank has to keep the papers, and some other reasons too. One of the most recent entries on ‘mortgage free roll call of honour’ was someone advising to leave a little in there.  

Living_proof

HelenaPinky said:

I am mortgage neutral but have withdrawn savings to pay off mortgage completely--final date is 1st October 2022. I will be better off in the  end

@G@gill5blue a lot of forumites advise on the Mortgage Free forum to not pay off your mortgage completely, leave a little in there. Something about the bank has to keep the papers, and some other reasons too. One of the most recent entries on ‘mortgage free roll call of honour’ was someone advising to leave a little in there.  

In recent years the Land Registry holds the Deeds digitally so there is no reason to leave with your Bank any more. 

RateTartExtraordinaire

@HelenPinky @G@gill5blue
Yep. Land Registry hold the deeds now.
The only other reason I can think of not to pay off in full is if there is an early redemption fee to pay. 

leftatthetrafficlights

I paid mine off in full a couple of years ago - I had some documentation returned but it's all on the land registry site anyway so not concerned with it. As @RateTartExtraodinaire said, unless there is an early redemption fee (or you want to keep a tiny mortgage to enable you to borrow more if you want/need it) I don't see any reason not to pay off in full - it was certainly a happy day for me!! 😉😁

otb666

i think its something to do with house sale scam where homeowners are unaware their house has been sold and they cant do this if bank is still involved I could be wrong though

Primrose

With all the other cost of living issues currently to worry about, I think becoming completely mortgage free without any irritating little bureaucratic issues to worry about is the best route. As an oldie who can remember the awful time when interest rates soared to 15% and one or the other of us hovering  on the edge of redundancy, every penny  of sacrifice to become mortgage free at the earliest possible date proved the best investment ever.

RateTartExtraordinaire

otb666 said:

i think its something to do with house sale scam where homeowners are unaware their house has been sold and they cant do this if bank is still involved I could be wrong though

There was that story in the press last year of the vicar who went away for work and someone managed to sell his house fraudulently. At the time, the police refused to do anything. However, I've seen since that someone was arrested for fraud.

You can set up an alert with Land Registry so that they alert you about any activity. I've done this. There is a link to it on MSE website. 

florianatwobob

With all the uncertainty with interest rates I’m exceptionally glad I’m fixed until April 2028. I decided to fix for 10 years in 2018 (due to Brexit uncertainty) and was able to get new business rates with my mortgage company due to the low LTV. After that I’ll have 9 months to pay and I’ll be mortgage free. 

It has meant whilst everyone else has been enjoying really low interests rates I’ve been paying a bit more but I think over the long term it will average out and I’ve appreciated knowing what the mortgage payment will be. 

Beshki

OH is complaining that it’s cold at home, and it is. I’ve really noticed a drop in temp the last week or so. Just trying to order him some thermal T-shirts & they’re sold out many places already! 

Primrose

Beshki said:

OH is complaining that it’s cold at home, and it is. I’ve really noticed a drop in temp the last week or so. Just trying to order him some thermal T-shirts & they’re sold out many places already! 

Not surprised.  I think for most people  this coming winter it will be a case of "put on" before you "switch on".