Once you pay off your full mortgage amount, what happens next?

the_mandarin
the_mandarin Forumite Posts: 104
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I may be jumping the gun a bit here considering it will perhaps still be a few years before I need this information, but I was still wondering what happens once you pay off your full mortgage amount to your Bank.

Is there any need to hire a lawyer again at that point, to fully transfer the house to your name from the Bank? If so, then are these fees high enough to be factored in before actually paying off your full mortgage amount?
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  • chanz4
    chanz4 Forumite Posts: 10,693
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    Bank normally can do the removal, or even do it yourself
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • the_mandarin
    the_mandarin Forumite Posts: 104
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    chanz4 said:
    Bank normally can do the removal, or even do it yourself
    Thanks for your reply, but can you please elaborate on what you mean by "removal"?
  • CSI_Yorkshire
    CSI_Yorkshire Forumite Posts: 1,792
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    The house is already in your name.  The house is not in the bank's name in any part.

    What the bank has is a "charge" on the title - that sort of says you can't sell without us saying so, we can get the money from the sale to pay back the debt etc...

    When you pay off the mortgage completely, this charge is removed from the title.
  • the_mandarin
    the_mandarin Forumite Posts: 104
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    The house is already in your name.  The house is not in the bank's name in any part.

    What the bank has is a "charge" on the title - that sort of says you can't sell without us saying so, we can get the money from the sale to pay back the debt etc...

    When you pay off the mortgage completely, this charge is removed from the title.
    Thanks, that was very helpful :)

    Does the Bank remove the charge on its own once the Mortgage balance reaches zero, or do I have to contact them to get this done? Also, how do I know that this "charge" has been removed?
  • Nearlyold
    Nearlyold Forumite Posts: 2,160
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    Typically the Lender will write to you a month or so before your Mortgage is due to be paid off with details of any account closing fees payable in addition to the mortgage debt itself.  Typically the same letter also asks if you want to use your own solicitor to deal with discharging the lenders interest in the property or whether you want the lender to deal with it.
  • the_mandarin
    the_mandarin Forumite Posts: 104
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    edited 28 July at 2:01PM
    Nearlyold said:
    Typically the same letter also asks if you want to use your own solicitor to deal with discharging the lenders interest in the property or whether you want the lender to deal with it.
    Thanks :smile:
    What is the recommended way to go please - Use our own solicitor, or leave it to the Bank?
    And if left to the Bank, do we have to pay their 
    solicitor's fees?
  • Makingabobor2
    Makingabobor2 Forumite Posts: 2,093
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    This is an interesting thread that I will watch with interest. I'm obviously a bit naive, as this never occurred to me. Ours is due to end in 3 years, but we are now making OPs to get it paid off quicker. I just assumed once it was paid, that was that. So do the Mortgage company charge you to "discharge" their interest then? 
    Making the debt go down and the savings go up, one day at a time.

    LBM 2015 - debt £57K / Sept '23 now £34,344

    Mortgage at 1st September 2023  £23,995 (Officially finishes June 2026, but plan to get MF well before that....watch this space)
    Total Mortgage Overpayments in 2022 was £240. 
    Total Overpayments so far in 2023 is £229


    Challenges
    EF #68 £160/£1000
    Christmas 2023 #3  £5/£365 (as I am saving for Christmas & birthdays, total will fluctuate through the year)
    Penny a day 2023 #12 £212.01/£667.95
    Make £5 a day -  Sept £137.67/£150  Oct £0/£125
                                 

    NSDs for September 13/15

    My debt free diary...https://forums.moneysavingexpert.com/discussion/6396218/we-will-get-this-debt-down-the-savings-up


  • CSI_Yorkshire
    CSI_Yorkshire Forumite Posts: 1,792
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    The mortgage company charge you for all sorts of things, like discharging their interest or closing the account.  There are sometimes extra charges for paying off the loan earlier than previously agreed.

    Example from YBS:



    The "Mortgage exit fee" is one thing - but note the line that says "you may be charged a separate fee by your conveyancer".


  • marcia_
    marcia_ Forumite Posts: 1,197
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     Nationwide just removed the charge when we made our final payment. Didn't need to contact them to do so 
  • Makingabobor2
    Makingabobor2 Forumite Posts: 2,093
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    marcia_ said:
     Nationwide just removed the charge when we made our final payment. Didn't need to contact them to do so 
    That's good to hear. We are with L!*ds, so maybe I'll contact them and ask how it works, They never mentioned it when I spoke to them about overpayments recently
    Making the debt go down and the savings go up, one day at a time.

    LBM 2015 - debt £57K / Sept '23 now £34,344

    Mortgage at 1st September 2023  £23,995 (Officially finishes June 2026, but plan to get MF well before that....watch this space)
    Total Mortgage Overpayments in 2022 was £240. 
    Total Overpayments so far in 2023 is £229


    Challenges
    EF #68 £160/£1000
    Christmas 2023 #3  £5/£365 (as I am saving for Christmas & birthdays, total will fluctuate through the year)
    Penny a day 2023 #12 £212.01/£667.95
    Make £5 a day -  Sept £137.67/£150  Oct £0/£125
                                 

    NSDs for September 13/15

    My debt free diary...https://forums.moneysavingexpert.com/discussion/6396218/we-will-get-this-debt-down-the-savings-up


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