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Paying off a mortgage

Hellsbells

Hellsbells

World's best procrastinator
Can anyone advise please? I'm wanting to pay off my mortgage so went to the bank several weeks ago to make an appointment and was told an appointment is not necessary. They'll just post me a redemption statement, I take this to the bank where I hold the funds then the transfer is arranged and that's that.
Was a bit confused by this as I was sure the process would be more complicated. For a start, Google has told me I need a solicitor to sort out deeds etc.
Anyway 4 weeks on and I still haven't received a redemption statement 🙄

Can anyone please tell me the process for paying off a mortgage as I don't feel like my bank want to tell me 😬
 
Maybe I was lucky, but it was pretty much that simple. I called the bank and asked for a redemption value as of a certain date. Then I arranged a transfer into my mortgage account, and the paperwork followed about a week later.

I ended up paying a few days early and got a cheque as it meant I'd overpaid.

Deeds aren't really a thing nowadays, but it's important to get a letter from the mortgage company saying that the mortgage has been settled and that they no longer have claim to the property. I did get my solicitor to check that I was off the hook nonetheless.

ETA: It's a lovely feeling btw. 😄
 
don't think you need to have a solicitor involved.

may or may not be an early repayment charge - depends on the deal your mortgage is on.

while paper deeds are less important than they used to be (as there's now electronic records) your lender may offer to keep them securely for a modest fee (or some will let you keep a token amount outstanding on the mortgage so they keep them for you

or if you have a solicitor who's done your will etc, they may be willing to keep them securely for you.
 
Thanks this is good news 🙂 It was so hard getting the mortgage in the first place, just thought there'd be more to ending it.
I don't have a solicitor. Should I get one? We will have early repayment fees so don't really want r to pay more if not necessary
 
I just put the money in the mortgage account and then a week later I got a letter to say the mortgage was paid off.

I didn't have to speak to anyone or anything :confused:

We didn't have any early repayment charges to deal with though so maybe that's the difference?
 
Hellsbells said:
Can anyone advise please? I'm wanting to pay off my mortgage so went to the bank several weeks ago to make an appointment and was told an appointment is not necessary. They'll just post me a redemption statement, I take this to the bank where I hold the funds then the transfer is arranged and that's that.
Was a bit confused by this as I was sure the process would be more complicated. For a start, Google has told me I need a solicitor to sort out deeds etc.
Anyway 4 weeks on and I still haven't received a redemption statement 🙄

Can anyone please tell me the process for paying off a mortgage as I don't feel like my bank want to tell me 😬
Click to expand...
I had this exact scenario a few months ago. They wasted my time really badly and breached my data! I made a huge complaint and charged them for 19 days interest that I had to pay because of still having a mortgage, because they were so inept. They also gave me extra money- £130 in all.

What I discovered was that my bank with the mortgage money have to make a CHAPS payment and you need details from the lenders in order to pay this. You do not need a solicitor. Your best off going in branch to your bank to do this. There is a small cost for them doing this.
 
contadino said:
Maybe I was lucky, but it was pretty much that simple. I called the bank and asked for a redemption value as of a certain date. Then I arranged a transfer into my mortgage account, and the paperwork followed about a week later.

I ended up paying a few days early and got a cheque as it meant I'd overpaid.

Deeds aren't really a thing nowadays, but it's important to get a letter from the mortgage company saying that the mortgage has been settled and that they no longer have claim to the property. I did get my solicitor to check that I was off the hook nonetheless.

ETA: It's a lovely feeling btw. 😄
Click to expand...
Deeds are most definitely a thing! And you should get them returned within 28 days of paying off the mortgage.
 
When I did mine it really was just a matter of asking for the redemption figure on a given date and transferring them the money. I got a big bundle of papers, some of which were fascinating, with the deeds by recorded delivery. This was a few years back before the land registry was mostly electronic.

Some people leave a fiver on their mortgage so that the bank have to look after the papers, I didn’t do that and brought a fire safe for £30 instead.
 
Last edited:
baldrick said:
I just put the money in the mortgage account and then a week later I got a letter to say the mortgage was paid off.

I didn't have to speak to anyone or anything :confused:

We didn't have any early repayment charges to deal with though so maybe that's the difference?
Click to expand...
Same here , rang the building society , paid the last payment over the phone , they sent me the redemption certificate, and the deeds arrived about a week or so later.
 
Mortgage lenders seem to be getting rid of the whole deeds storage thing, I haven't finished paying off my mortgage but they sent me a package of all my deeds and related documents recently saying "these are now stored electronically, we don't need them, you don't need to provide these to anyone if you sell the property but you may want to keep them for your records".

So the leaving a small amount on your mortgage for deeds storage thing (for those of you who have done that) may not work for much longer!
 
So I have the redemption statement now & it's all fine, no suprises, but there's a line I don't understand which I'm hoping someone here can explain:

'once borrowing has been repaid, if you wish the legal charge given to you by the bank to be removed, please instruct your advocate who will liase with the bank'

What are they talking about?
 
Hellsbells said:
'once borrowing has been repaid, if you wish the legal charge given to you by the bank to be removed, please instruct your advocate who will liase with the bank'
Click to expand...

:confused:

subject to more than the usual disclaimers, but i think 'the legal charge' is effectively a marker on the property at the land registry to say that the bank / lender has a charge (mortgage) on the place.

who's told you that? the lender?
 
Puddy_Tat said:
:confused:

subject to more than the usual disclaimers, but i think 'the legal charge' is effectively a marker on the property at the land registry to say that the bank / lender has a charge (mortgage) on the place.

who's told you that? the lender?
Click to expand...
Yes. It was in the redemption statement letter
 
I was terrified by how easy it was to pay mine off. I called the lender, got an amount over the phone and was allowed to pay it by debit card. And it wasn't a tiny figure. It took bloody ages for my deeds to arrive but they did eventually and I also bought a fireproof safe for mine although it's mostly filled with sentimental bits and pieces :D
 
Hellsbells said:
Yes. It was in the redemption statement letter
Click to expand...

:confused:

i would have thought it was part of the deal that they take the charge off when you pay it off.

but looks as though there's a form you can fill in and send to the land registry - although there's one the lender has to fill in as well. Doesn't sound like you need a lawyer involved, although there's reference to 'certified copy' of some documents.

Hang on a minute - you (and / or the property) are in England, aren't you? The law may be different elsewhere in the UK.
 
Hellsbells said:
So I have the redemption statement now & it's all fine, no suprises, but there's a line I don't understand which I'm hoping someone here can explain:

'once borrowing has been repaid, if you wish the legal charge given to you by the bank to be removed, please instruct your advocate who will liase with the bank'

What are they talking about?
Click to expand...
Yes, Puddy_Tat 's right. The legal charge against the property, effectively, is the formal record of the mortgage debt on the records relating to your property.

Usually, the mortgage lender would have a first charge on the property, which means that if/when the property is sold, the debt to the mortgage lender has to be paid off before you get your hands on the balance. There can also be other kinds of charges, for example if someone has secured a personal loan against the property, or maybe a creditor has lodged a charged relating to a different type of debt, eg unpaid bills or legal aid or whatever, and again those charges would have to be discharged before you received the balance following a sale of the property.

If you're not selling the property and you just want to get rid of the charge, after paying off the debt, you'd need to let the Land Registry know so that they can remove the charge from your property records.

I don't know if this is the most up to date form, but this is on the gov.uk website.
www.gov.uk

Remove a paid off mortgage: registration (DS2E)

Application form DS2E: application form to cancel the entries relating to a registered charge for which an END has been sent.
www.gov.uk www.gov.uk

Try giving them a call and asking them. If not the form in the link above, there's probably another form that needs to be filled in and submitted to them.
www.gov.uk

Contact HM Land Registry

Get in touch with us or use a guide that may answer your question.
www.gov.uk www.gov.uk
 
Puddy_Tat said:
:confused:

i would have thought it was part of the deal that they take the charge off when you pay it off.

but looks as though there's a form you can fill in and send to the land registry - although there's one the lender has to fill in as well. Doesn't sound like you need a lawyer involved, although there's reference to 'certified copy' of some documents.

Hang on a minute - you (and / or the property) are in England, aren't you? The law may be different elsewhere in the UK.
Click to expand...
Isle of man. Who knows here. Don't understand why the bank hasn't bothered to explain any of this
 
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