What actually happens when you pay off your mortgage?

[Mindgone]

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.

23 months and counting - we should pay it off on our son’s 18th birthday!

I contacted my mortgage company and asked for a statement of early settlement payment. They sent it to me and I went and paid it all off. Now I own my house outright and it’s a great feeling.
You don’t receive the deeds now days, it is all registered with land registry.

I paid mine off online two weeks ago, balance showed as zero for a few days then it disappeared from my list of accounts. No letter from Building Society as yet, bit of an anticlimax really!

Nothing happened! We already had the deeds. I expected some sort of fanfare (eg a closing statement detailing borrowing and repayment) but nothing. Went online, asked for redemption statement, was given a figure, transferred the money and that was the end of that! Easy, but part of me sort of felt ‘where’s the thank you letter?’ Paying the mortgage is such a big part of your life, but clearly the bank is not as emotionally invested in the relationship!!

I've got 10 more years of mortgage but the deeds are in my cupboard!

I’m at least 15 years off paying mine but having read the previous post about how an extra £10 per month knocked off their final payments i’m off to change my mortgage direct debit!

I was a bit sad, as I had paid it off with inheritance from my parents' estate. They died relatively young for this day and age. But I knew that I was giving my children extra stability and that my sensible parents would have approved.

Most banks and solicitors don't want to store deeds now due to the cost. As has been said many times, for the majority of people, they are for historical interest only.

Thanks for the tip re: land registry fraud prevention though. Will sort that out.

It was very anti climactic! I think there was a small admin charge of about £80 and the bank were quite keen for us not to pay it off obviously

We did ponder on paying it off early or not as our investments generally generate more income than the interest we were paying but in the general uncertain economic climate my DH was particularly keen for us to be mortgage free.

Nothing spectacular happens. You should though just remind lender to remove the security they will have on the property. Most do this automatically but I found when I had paid of a flat I had purchased when sons went to uni that the security was still on it. Only took a phone call to sort it out.

Not sure how younger couples can afford a mortgage, these days, I struggled at £58 per month, I believe some mortgages are over a grand per month. That is more than my first annual salary. No wonder both parties have to work to keep a roof over their heads. Glad I am the age that I am.

We both had to work full time and buy before having a baby. So did mmy parents who were married about 10 years before having me!!! (and both in professional jobs - doctor and teacher - in order to be able to buy). My own daughter similarly - married, both in professional jobs, both bought before they had a child.

So I suspect it is similar to how it was - idally pick high paid work, marry someone similar, have no babies until yo uhave establshed a career and buy before you breed and then both carry on working full time after.

I asked for a final figure then went into the branch to pay it as I wanted to do it that way...but yes quite anti-clmatic.

Deeds came through the post a while later and were filed somewhere in the house

I will never find out. We're both around 40 and have recently taken out a 30-year mortgage.

I will never find out. We're both around 40 and have recently taken out a 30-year mortgage

That's a bit pessimistic, expecting not to make 70, it happens sooner than you think!

I believe some mortgages are over a grand per month

Some are £4K a month and more

We decided not to pay ours off but continue pay a paltry sum like £10 per month on a tiny outstanding balance. We did this as we thought it is would be easier to get a mortgage extension in case of emergency/redundancy of one of us, than it would be to get a new mortgage from scratch. Don't know whether this would work in reality but the theory sounds good. Sort of like an extra insurance policy.

It’s all online now - they should have sent you the original deeds.

It doesn’t matter if you pay a pittance to keep it with your mortgage providers it’s online now - no need for this

viques I’m not allowed a carousel or a shooting gallery on mine!

I used to think the possession of deeds meant you owned the house so they should be kept very securely. No longer think that is so.

Thanks so much everyone for your stories, valuable advice, and good wishes, I love Mumsnet!

Get another mortgage for your holiday villa.

Looked at that, as per your user name. TooMuchtrouble

We are paying ours off next Feb when our fixed term ends. It will be 23 years early.

We aren't telling anyone so will just have to celebrate quietly!