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Original poster

What actually happens when you pay off your mortgage?

149 replies

Mindgone · 30/08/2019 00:21

We had a conversation about this, and neither of us actually knows! What about the deeds of the house? Does the lender have them? Do you need to find a safe place for them? Do you need a solicitor to pay off your mortgage? Genuinely haven’t a clue, so any advice gratefully received.

OP posts:
PickAChew · 30/08/2019 00:24

You can keep the deeds on the book shelf in your bedroom, if you like We did. It's not like they're the only available copy - it's all stored electronically.

(and nobody asked for our copy of the deeds when we sold and started again with the mortgage)

Thehagonthehill · 30/08/2019 00:25

You phone up your mortgage lender to say you want to pay it off,they send you a letter saying how much you owe plus any fees.
I paid mine by bank transfer from my account online then you get a letter saying it t us paid.
You don't have to bother with deeds(unless they are historical and you want them) as ownership etc is on line with land reform story.

barryfromclareisfit · 30/08/2019 00:25

It’s nice.
No solicitor needed.

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General money
Thehagonthehill · 30/08/2019 00:26

Land registry,autocorrect insistent on trying to change that again.

Danglingmod · 30/08/2019 00:27

Deeds are all online really now but you'll probably get sent a paper copy - unless you already have them. They're often forwarded to you when you buy a house now anyway, even with an outstanding mortgage.

lpchill · 30/08/2019 00:32

I worked in mortgages. Unfortunately no fan fair ( I always cheered for people who paid it off)

Cal your lender ask for the figure to completely redeem the mortgage (pay it all off) if there are deeds they will get sent to you but the majority of houses now are electronic so the mortgage lender will contact them and will change the deeds for you. (You don't even get a copy)

You may get a letter from your lender confirming mortgage is paid but confirm that with them (my company didn't for some reason. Also confirm they will cancel the Direct debit. Then pop open the champagne!!!

RosaWaiting · 30/08/2019 00:33

Have a party!

Likethebattle · 30/08/2019 00:37

In my line of work we need a solicitor to release the security held over the property.

ShippingNews · 30/08/2019 00:44

We just paid it online - checked exactly what was owing and transferred the funds. They sent us the deeds, we've got a filing cabinet so they went in there with all the other important papers. Then you have a nice little party to celebrate !

RubbingHimSourly · 30/08/2019 00:52

Paid mine off just last week. We just contacted the mortgage people.........also had a nice surprise as dp had unknowingly paid an extra £10 each month so we were £1700 in credit. I'm buying myself a new sofa Grin

RubbingHimSourly · 30/08/2019 00:54

And we paid over the phone using our debit card.......ours was an ISA mortgage so we had to contact legal and general first to release the funds then topped it up.

2018SoFarSoGreat · 30/08/2019 01:18

It was all very disappointing IMO. Had to look at banking online, to see a line that said "Paid in full" and a zero balance.

Then bought next house, paid cash (from sale of last) and again, all we saw was ENORMOUS amount of money magically go from our bank balance. And sale paperwork showed full price, with amount 'due' filled in as paid.

I do not know that I saw 'deeds' as such. Hmmm. Need to check that!

Proseccoagain · 30/08/2019 08:56

Just went into the building society, told them we wanted to pay it off, and handed over a cheque. That was it! Have no idea about paper deeds, but I know they are held electronically as the solicitor had to access them when DH died.

YesILikeItToo · 30/08/2019 08:59

You might need a solicitor in Scotland - you need to have the bank discharge their standard security over your house and have that registered.

bananasandwicheseveryday · 30/08/2019 09:04

When we paid ours all we got was a letter informing us that the mortgage was paid and the account was therefore closed. I called to ask about the deeds, but was told they are all online now so couldn't be sent.

kjhkj · 30/08/2019 09:06

Just a letter from the bank saying all done. No deeds since we only bought the house 10 years ago and so the property was registered. Most properties are nowadays.

Jimdandy · 30/08/2019 09:18

If your property is registered, then you no longer need paper deeds. My house built in the 80’s no longer has them as it’s registered.

I can’t wait to pay off my mortgage. There will be a “charge” on the Land Register that will be removed.

RainOrSun · 30/08/2019 09:25

We got a letter from land registry as well as a letter from the building society. No solicitor involved for us (England).
No deeds - electronic. Mum and Dad had the deeds in the "drawer of important stuff"

DecomposingComposers · 30/08/2019 09:27

Nothing happens! The deeds are all held electronically now according to our bank so you don't even get them. All we got was a letter from the bank to say the mortgage had finished.

CouldBeOuting · 30/08/2019 12:43

My experience... tell mortgage company I want to pay off my mortgage could I have the closing figure please (interest only mortgage so still whole capital to pay off) and details of where to send money.

Said they’d send a letter... two weeks and another interest payment later I chased and they said they’d send another letter... week later the “first” letter arrived so I did the transfer (large sum, more than our yearly income so very careful, bank double checked etc), few days later the “second” letter arrives with all the same details. After a week I called to ask about the deeds etc “you haven’t made a payment”. They then start claiming that the bank details I used are wrong, the details on BOTH letters I received are incorrect and they’ve never received my money. My bank confirm that the money had gone to the account as per both letters and was definitely an account in the name of the mortgage company. In the meantime ANOTHER interest payment is taken!

Contacted the financial ombudsman on advice from my bank with all my evidence... mortgage company miraculously “found” my money and reckoned that was the end of it! I made a complaint and eventually they had to pay me several thousand pounds in compensation.

It was a great feeling when the deeds finally arrived with a final statement saying all paid.

linentowel · 30/08/2019 13:13

You need to discharge your mortgage security. A solicitor will advise.

Troels · 30/08/2019 13:48

Where do you look at the deeds online we own ours outright. Best feeling ever.

SirGawain · 30/08/2019 15:16

In our case we settled early, 20 years ago. All fine, got the deeds back and lodged them with our solicitor free of charge. About five years ago when we were selling I requested a downloadable summary of our Title from the land registry. (Cost less than five pounds). Discovered that the bank had omitted to inform the Land Registry and a charge on the property was still noted. Contacted the bank and they admitted the error and corrected it. It could have been very embarrassing when the pre-contract enquires were made.

SirGawain · 30/08/2019 15:20

Where do you look at the deeds online we own ours outright.
The Land Registry website. You can download them for about five pounds.

Troels · 30/08/2019 16:45

Thanks SirGawain

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