Fabioso

So after scrapping the supercar idea (due to my concerns about choosing the right car, day to day running costs, nobends with keys, reliability, looking like a Tw@ etc) I decided to go after clearing the whole mortgage instead.

In the next 3 months it should be cleared, so what happens after that? I rang the bank but the guy seemed unclear about what I will receive in terms of confirmation.

Anyone throw any light on what their lender did when it came to a close?

I have no idea where the title deeds are either, he seemed to suggest they don't hold them as everything is done electronically these days. If I am confirmed as the title holder on the electronic register, do I need to care about where the physical deeds are?

Graz

I'd imagine it would be much the same as when you change mortgage providers etc. and that you'll need a solicitor to help. At the time you want to end your mortgage you'll need to get a redemption statement from your mortgage provider, this will show how much you need to pay them at a specific date to end your mortgage + a daily interest rate to be added if you complete after the date specified as well as any redemption fees payable.

You'll then need to set a completion date with the solicitor, and just before that date transfer whatever monies you need to redeem your mortgage to the solicitors client account. On the day they will settle your account with the mortgage provider and change the title deed on the land registry so that you will now be the sole title holder i.e. the mortgage provider will no longer be listed.

The land registry and therefore details of deeds is as you say now all electronic. If the last time the deeds were changed predated the point when they went electronic then you may need the physical deeds and if so it will be your mortgage provider that will be holding them..

We were quite surprised when we bought our house and a few weeks later the solicitor sent us the deeds in the post. Aren't our lenders supposed to have these we asked, no it's all electronic now so yours to keep say the solicitors. Interesting bit of history as to how our little plot was once part of a farm.

john banks

I am in Scotland so it is a bit different perhaps, but the lender and solicitor charged a few hundred each to discharge. Although there is an electronic register there are still usually documents which you could keep yourself or store somewhere, for us they are old planning and building warrant docs to show the work done.

Our mortgage was due to finish in a few months but it is an offset so I was going to keep it open to keep the line of credit and leave a low balance in it sweeping funds to/from the offset, but decided to buy another car and do more building work so that will keep it going for another year or two, but I suspect the account will stay open longer as it is a good line of credit at good rates.

jonc

This is a good plan, and one that I am following too. I have a sizable overpayment reserve that I can dip into if I need some money at short notice whilst keeping the mortgage ticking over until it reaches the end of the term or if interest rises to a rate that deems it no longer cost effective. Also keeps your credit rating healthy too which has an impact in other areas other than just your ability to borrowing money.

mart360

Not much happens lol ,

You get a letter confirming the mortgage is paid off and no outstanding charge etc , and a bill ...

Yup you pay £xxxxxx wonga off to clear your mortgage off, and they bill you for release / transfer of the deeds lol about £50 if i recall, you can if you feel really generous, pay them to look after your deeds, at £xx per year, i kid you not.

Mart

boomer

I am with Halifax, and paid off "most" of my mortgage umpteen years ago.

It is now a "deed store" mortgage, which means that i still owe them £125 (that is one hundred and twenty five pounds only), but at zero percent interest. They keep the deeds (hopefully still in paper form) and i have the house.

Benefit to me - somebody else has to hold the deeds; i can "extend" the existing mortgage easily if i need some money to do substantial stuff on the house; it is another account to qualify for stuff like the million pound draw/discounted insurance etc..

Benefits to Halifax - another mortgage acccount for their list; another "loyal" customer; prolly something that i have mssed.

Win-win for me, and still not too bad if your have to actually close your mortgage account as your house is then "free" (apart from council tax and gas and electric and phone and insurance, etc... ).

mb

PaulC72

I was going to post about that sort of thing, I did wonder if it was still possible to do and obviously it must be.

It's a great solution to the final closing scenario.

bigredrob

My mortgage was with the Halifax, I just went in, with my mortgage documents/number, and wrote them a cheque , for the balance owed, to pay it off, got a receipt for the payment, .....and confirmation it was paid off, discharged,... in the post,... a few days later. Most "Deeds" are now kept "electronically". I did not want to keep a line of "credit" open. no solicitors, or other expenses.

Fabioso

Sounds like from what people have said it's a bit of a non event.......after all these years I wanted at least a framed letter and a bottle of bubbly