Repaying Lifetime Mortgage

sleepymans

Hello there,
Recent change in circumstances means we want to fully repay our lifetime mortgage and obviously get the charge quickly removed from our title.

Basically asking for advice about making secure payments please:

We have a settlement figure and now wish to make a quick secure payment (to avoid incurring any more interest) but not confident about actually making six figure sum payment through internet banking😱

Our only past experience of paying large amounts has been through Solicitors special secure payment methods during buying and selling property. Don’t really want to waste time engaging a Solicitor just for this though.

MattMattMattUK

sleepymans said:

Hello there,
Recent change in circumstances means we want to fully repay our lifetime mortgage and obviously get the charge quickly removed from our title.

Basically asking for advice about making secure payments please:

We have a settlement figure and now wish to make a quick secure payment (to avoid incurring any more interest) but not confident about actually making six figure sum payment through internet banking😱

Our only past experience of paying large amounts has been through Solicitors special secure payment methods during buying and selling property. Don’t really want to waste time engaging a Solicitor just for this though.

You do not need a solicitor, you just need to make the transfer to the lender. Make sure you verify their bank account, but apart from that you might find it exceeds your daily banking limit so either need to make a series of payments (which might take many days depending on the limit and amount you are repaying) or it might make more sense to make a CHAPS payment, again something that you can do fully online and I am not sure any banks even process then in store anymore. Alternatively, does the lender offer the option to collect the amount from your bank account via Direct Debit? They might not as lifetime mortgages do not have regular payments so that might not be part of their system.

grumpy_codger

100 000 is 'six figures' and so is 999 000.

Also, define 'quick'.

Some banks have pretty high Faster Payment limits, especially if made in a branch. With a smaller limit you can make several payments, including simultaneous from different banks.

However, when buying houses for big amounts people usually use CHAPS payments that cost £20-£30, available AFAIK only in branches and guaranteed to arrive the same day. With some accounts, e.g. Santander Edge, they are free.

silvercar

Worth sending a small payment first and checking it has arrived, before sending the bulk.

MattMattMattUK

grumpy_codger said:

100 000 is 'six figures' and so is 999 000.

Also, define 'quick'.

Some banks have pretty high Faster Payment limits, especially if made in a branch. With a smaller limit you can make several payments, including simultaneous from different banks.

They rarely exceed £20-25k, though some will allow you to go to £100k if you go to a branch and show multiple forms of ID (usually photocard driving license and passport). 

grumpy_codger said:

However, when buying houses for big amounts people usually use CHAPS payments that cost £20-£30, available AFAIK only in branches and guaranteed to arrive the same day. With some accounts, e.g. Santander Edge, they are free.

Nearly every bank allows CHAPS to be done online, some only online. For personal payments I have made four CHAPS payments over the last decade, all have been done online, for work I have made three, again, all online. The fee, when charged has been £15 for some year now, you are right that some fee paying bank accounts allow the customer a limited number of CHAPS payments per year included in their package. 

grumpy_codger

MattMattMattUK said:

grumpy_codger said:

100 000 is 'six figures' and so is 999 000.

Also, define 'quick'.

Some banks have pretty high Faster Payment limits, especially if made in a branch. With a smaller limit you can make several payments, including simultaneous from different banks.

They rarely exceed £20-25k, though some will allow you to go to £100k if you go to a branch and show multiple forms of ID (usually photocard driving license and passport). 

grumpy_codger said:

However, when buying houses for big amounts people usually use CHAPS payments that cost £20-£30, available AFAIK only in branches and guaranteed to arrive the same day. With some accounts, e.g. Santander Edge, they are free.

Nearly every bank allows CHAPS to be done online, some only online. For personal payments I have made four CHAPS payments over the last decade, all have been done online, for work I have made three, again, all online. The fee, when charged has been £15 for some year now, you are right that some fee paying bank accounts allow the customer a limited number of CHAPS payments per year included in their package. 

https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/transaction-limits/

I randomly checked Halifax, and it's apparently £250K in a branch.

Big payments online are likely to be blocked, be it FP or CHAPS. For £300K CHAPS I went to a branch and spent almost half an hour there showing IDs, and answering various questions.

sleepymans

Aah YES! CHAPS sounds like the way to do it, and secure.
Thank you, very helpful👍