What happens when your Mortgage ends?

Banksy_2

Afternoon all,

Fairly new to posting on here having kept myself engaged through reading posts on the forum over the years, but I wanted to ask what may seem a simple question.

I made myself a promise about 15 years ago that I wanted to be mortgage free by the time I was 50 (May 2023), and having taken advantage of many tips from MSE posters on things like bank switches, boosting income etc, in a few months I'll be coming to the end of my mortgage - I'm aiming for my last payment to be in December to make Christmas a special one to celebrate!

Anyway, my question is what happens at the end of the mortgage?

In my case I'm looking to utilise a money transfer 0% fee credit card to transfer money (around £3k) in to my current account to then pay off the remainder of my mortgage which comes out of it's early repayment penalty time at the end of October, and then pay off the credit card by December (which is why I'm classing my last mortgage payment as December).

Is there a particular process that those lucky enough to have completed on their mortgage have to follow? Anyone done things a similar way to what I've mentioned above?

Do the deeds get sent to you, or do the bank charge any holding fee for them?

Thanks in advance for everyone's help.

The Real Banksy

MrWannabe

I too made a promise to myself (9 years ago) that I would be mortgage free by the time I am 50.   Will turn 50 in March 2024. My current fixed deal ends late Feb 2024, at which point there will be no penalty for over payment.  I have the funds set aside to pay off the balance early March 2024 (counting down the months now).

Like you @Banksy_2 I don’t really know what happens when the final payment is made. I plan to call my mortgage provider early Feb 2024 to ask about the process.   In terms of the deeds, I think others on here have mentioned that the deeds are held electronically by HM Land Registry

South_coast

You ask for a settlement figure, they send it to you, you pay it, and you are MF. Then they write to say the balance is settled and they are removing the charge at the Land Registry. I'm sorry to say, it's no more exciting than that 🙁!

northwalesd

South_coast said:

You ask for a settlement figure, they send it to you, you pay it, and you are MF. Then they write to say the balance is settled and they are removing the charge at the Land Registry. I'm sorry to say, it's no more exciting than that 🙁!

Exactly what happened to us earlier this year. As an added bonus I have our address monitored for property alerts at land registry, so I got an email from them about the charge removal too.

Banksy_2

Thanks for the responses, I'm looking forward to MF Day where I'll certainly be popping the cork on a champagne bottle or two!

My 10% overpayment limit ends on 30th June, so lumping on again for July, before the Early Repayment Charge ends on 30 September, and then cue money transfer at the start of October, and then pay off credit card by December - can anyone else tell I'm excited about this!!

Good luck @MrWannabe !

Anyone else doing the MF by 50 yo?

Banksy_2

Just a further question,

Once your fixed rate period ends and you don't go for a new deal but just let your mortgage roll on, are you still restricted to overpaying your mortgage by 10% or is it a case of limit removed?

Thanks

willowparrett

What happens at the end of your fixed rate period should be set out in your original mortgage paperwork.  Normally you just automatically role on to the provider's 'standard variable rate' (eyewateringly high) - but there's generally no overpayment limit on this rate.  

Banksy_2

Delight to announce that I've just made my final payment on my mortgage today, meeting my target of being mortgage free at 50 years old!!

Have managed to get there early by doing 10 bank switches this year & also my wife has done 8 (netting £3000 in the process which all went towards the mortgage payment today) - big thanks to everyone on MSE for their ideas and support in me reaching my personal targets!

Champagne in our house tonight to celebrate our milestone, raising a glass to everyone else on a similar challenge 

redofromstart

Congratulations!

in our case (June 23) there was very little communication to say it had happened. You can pay to check that a charge has been removed but I found out afterwards that you can also register for free alerts to show changes to the property register. 

https://propertyalert.landregistry.gov.uk/

Banksy_2

redofromstart said:

Congratulations!

in our case (June 23) there was very little communication to say it had happened. You can pay to check that a charge has been removed but I found out afterwards that you can also register for free alerts to show changes to the property register. 

https://propertyalert.landregistry.gov.uk/

Thanks for this, I've registered this morning.  

Working_Mum

Banksy_2 said:

redofromstart said:

Congratulations!

in our case (June 23) there was very little communication to say it had happened. You can pay to check that a charge has been removed but I found out afterwards that you can also register for free alerts to show changes to the property register. 

https://propertyalert.landregistry.gov.uk/

Thanks for this, I've registered this morning.  

Thank you both - I have also registered my address, my aged Mum and my sister's address for alerts. A smart thing to do.