Paying off mortgage - how

[Monsterjam]

This may be a really silly question… how do I pay off my mortgage? I have the money and the redemption statement, do I just go to my bank and ask them to transfer the funds to the mortgage lender bank?

Ask your mortgage provider!

Yep, can do it over the phone too. Check you have the right account numbers & reference number for the payment. So that they can identify it.

In Scotland you need a solicitor (we'll, you don't but...) to end the mortgage on the Registers of Scotland. In England & Wales, they just take the charge off at the Land Registry. No clue about the process in N. I., sorry.

I guess I came to money matters to get advice on the process from mumsnet as I am pretty clueless… not so clueless that I hadn’t planned to speak to them

@Wombat98 thank you! It seemed too simple to just pop to bank and get them too do a transfer… I suspect I am / was overthinking it all

Make sure you don't have an early redemption charge. Assuming you don't, then just speak to your mortgage company about next steps. May also be worth putting a land registry notification on your house to alert you if anyone tries to take any steps in relation to it as there's an upturn in fraud over properties that have no mortgage.

@DappledOliveGroves thank you. Do have a early repayment charge but that’s all accounted for… I just need to give them my money now. Thanks for the advice re: fraud

Are there not instructions with the redemption statement? Can't remember how I did ours, but it wasn't complicated.

No helpful advice, but congratulations

It’s just says pay the money to this sort code / account no. I’ve never moved that amount of money without a solicitor before so was querying whether it really was as simple as walking into my bank and asking them to do a transfer.

@gingerbubs thank you. X

My mortgage is with Santander as is my bank, I can overpay my mortgage through the online banking app.

Depending on the amount you need to transfer, you may find your bank has daily payment limits in place. But you can do it in separate transactions on different days if needed - and I'd recommend doing a small transfer first to confirm that the details are correct.

@UnaOfStormhold its near on £200k that’s probably what’s making me a bit anxious. I’ll go the bank tomorrow and ask them to raise a chaps payment I think.

I'd second the small transfer first, just to check....

@DappledOliveGroves

Make sure you don't have an early redemption charge. Assuming you don't, then just speak to your mortgage company about next steps. May also be worth putting a land registry notification on your house to alert you if anyone tries to take any steps in relation to it as there's an upturn in fraud over properties that have no mortgage.

Can you tell me a bit more about this, please?

@Wombat98

I'd second the small transfer first, just to check....

Agreed.

Good idea also to call the mortgage provider (don't use the number on the redemption cert) to have them confirm the account and sort code they would give for this.

Congratulations!

For us, if the time comes we need to ring mortgage place and ask for a mortgage settlement amount, give a date we want to do it. We then would get a final redemption statement (includes, final amount, interest, fees etc) and it will advise different ways to make the payment.

@DappledOliveGroves

Make sure you don't have an early redemption charge. Assuming you don't, then just speak to your mortgage company about next steps. May also be worth putting a land registry notification on your house to alert you if anyone tries to take any steps in relation to it as there's an upturn in fraud over properties that have no mortgage.

Me too please

Their website may well tell you. I recently paid a chunk off via Santander the lender. I had to call them (having already transferred the funds into my current account from savings) and first we tried on my debit card (which worked for a lower repayment the year before) but that failed on the call so the lady then arranged it via my existing direct debit (to come out 4 days later which it duly did). With mine you can repay 10% of it a year with no penalty and over that sum there is something like 5% penalty charge although if you are repaying early that may end up being zero when you take off the interest you would have paid on that sum each year to end of fixed period so still can be worth paying off.

The above is for England.

i have also paid off in the past by cheque by post about 5 year ago with another lender with a clear covering letter of what I wanted them to do. They are probably not quite so happy with cheques these days.

Check penalties if you are in a fixed interest rate period of the loan

[quote Monsterjam]@UnaOfStormhold its near on £200k that’s probably what’s making me a bit anxious. I’ll go the bank tomorrow and ask them to raise a chaps payment I think.[/quote]
This is amazing OP, congrats!