kevin stanton

I might have the chance of paying my mortgage off early, just wondering whats involved.

Do i need a solicitor, what happens with the deeds to the house.

I've also got an endowement policy, if i stop that, will i get the money back that i have paid in?


Thanks in advance, i know its a lot of questions on such a sunny day, why arn't i in the garden with a beer.

Kevin

Chip

Just ring your lender. When I paid mine off it was a simple task. Left deeds with them for a £1 yr fee.

Chip.

douglasb

Depends how long your endowment has been going whether or not you will get your money back. If it's a 25 year policy and it's been going for less than 10 years, probably not. If it's been going for 20 years you should get more than your money back.

If it's just a few years off maturing you may be better to keep paying the premiums and let it run. The amount you get back should then be greater than the current surrender value plus the cost of premiums from now to maturity.

Ask the insurer for a surrender value and see what they offer.

Doug

shunty

nice one Kevin, wish I could pay mine off...
my plan is to bring it down to a 10 year one in 3 years time...

shunty

Apparition

Paid mine off earlier this year. Just contact lenders for a closing statement. Pay what's required then they send you the deeds. You usually have to forward them to your local land registry officce to be logged as being soley yours then they send them back to you to do with as you please. Some keep them in the bank, I have stashed mine away somewhere safe.
Its a nice feeling not to have that millstone around your neck.

fast bloke

Leave £1 outstanding on your mortgage. The lender will keep your deeds safe for you . Otherwise you should keep them in a safe deposit box or something, which costs more than the 4p a year interest you will pay on a £1.00

kevin stanton

Thanks all for the info.
The mortgage itself sounds easy enough to end.

The endowment was taken for 20 years and has been running for only 5.
I've roughly paid about 6 grand into it, am i likely to get all that back on surrender ?


Kevin

XRS

You'll probably find that most of the first year's payments to the endowment company will have been taken as expenses, so you won't see that again. The endowment company will be able to give you a quote on what it's worth.

Of course, if you believe the stock market can only do up from here you might want to keep it going, or use it to back up your next house purchase if that's not too far away.

David Lock

I don't think anyone has suggested that you check that there is no penalty for paying off early? Also don't forget that the mortgage loan is the cheapest form of loan so it you're likely to need cash in the near term you may wish to keep mortgage for a while (but sounds like you don't). Also if you were required to take out a life insurance policy as mortgage condition I would personally keep this going. Usual disclaimer.... D