Paying off mortgage in full

Maryann1981

Our fixed rate mortgage finishes in a couple of months and we are in a fortunate position to repay it in full and be mortgage free.  What do we have to do?  I’m assuming that at the end of the term we get in touch with RBS and make a lump sum payment which clears the debt but is there any other paperwork to do?  Does a solicitor have to be involved?  Do we have to get a copy of the deeds?  I remember older family members talking about this years ago and them talking about paying the bank to store the deeds for them, is that still a thing?  I’ve got no one to ask in real life, so would appreciate any advice please. 

baser999

When I cleared mine I called my lender and as the money was already in my bank I was able to settle up there and then. No need for a solicitor. Sadly it seems that deeds are a thing of the past so received nothing save for formal confirmation of my payment and the loan being cleared.
And of course there’s that lovely feeling of not having that monthly payment any more 😄

silvercar

You will want to make sure the lender's charge is removed from your deeds. Deeds are now held digitally by the Land Registry. The lender will be familiar with the process, just make sure it is done to avoid a headache when you eventually sell.

Edi81

Deeds are held digitally but depending on how long you have been with your mortgage lender they could have them. That is why in the last people would leave £1 on their mortgage so they would continue to store them. 

jrawle

Within the last month of your mortgage, you should contact your lender and ask for a redemption statement. This will show the exact amount you will need to pay on the day you intend to pay the mortgage off, including the interest due to that date. (If you don't do this and don't pay quite enough, you will still owe that day's interest, which will itself compound further interest. If you pay too much, they will eventually refund you, but may not be quick to do so.)

If you bought your property from about the late '80s onwards, it will be registered. Deeds are no longer relevant, the title register is held by the Land Registry. Even if the lender has paper deeds, they will probably just destroy them. If you own a historic property, they may have historical interest and you may wish to retrieve them, but if you live in a standard housing estate, forget it. Certainly don't pay anyone to store them.

You can sign up for an alert with the Land Registry that will let you know if there are any changes to you property's title. This is recommended, after the case a couple of years ago where a house was "stolen" (which is probably easier for someone to do if you don't have a mortgage). If you sign up for this, it should alert you when the lender removes their charge from the title. You can also pay £3 at a later date to download a copy of the title register to check the lender is no longer mentioned.