Mortgage is coming to an end... What do I need to do.

[Tom B]

I'm hoping some of the learned or experienced folks here can assist as I am constantly amazed by the breadth of knowledge.

I'm now into my final year of my mortgage.

The fixed rate deal ends in January at which time I'll have around 6 payment left (at current rates).

The plan is I might just pay it up at that point using savings and then erebuild the savings using what would have been mortgage payments.

AIUI I need to ask the mortgage company for a settlement sum and give them a date to calculate it to. I then pay it and the house is mine.

But, is it as simple as that?

Do I need to involve solicitors?

I seem to recall my dad getting deeds for his house when he paid his mortgage off and seems to recall he lodged the deeds with a bank or solicitor? Do I need to do that? of not what do I do with the deeds?

The mortgages will be paid off about 12years early I took life insurance alongside the mortgage. I've spoken to them and they say that once the mortgage is paid I can stop paying them. And the source a new life policy with a cash payout should i so wish. So that seems easy enough.


There is a slight fly in the ointment that the house is in my name only as when we bought Mrs B had dubious credit rating. Ideally I need to put the house in both our names - it only seems fair she's paid half the mortgage :-). How do I achieve that?

 

[Drago]

Paper deeds aren't such a problem. In olden days whoever physically held the deeds in their hand could claim title, but its all registered electronically now so they are more symbolic than essential.

 

[midlandsgrimpeur]

There is a school of thought that you leave on a nominal amount for a couple of reasons. Firstly it leaves you the option to borrow against your house more easily should you need to in future. Secondly it stops scammers from fraudulently selling your house as the lender would always be notified. You can register for alerts with the Land Registry to counter this I believe.

As far as I am aware you don't require a solicitor, your lender will inform the LR that the property has been discharged and the deeds will be stored electronically in your name. I am sure your lender will advise you on all of this though.

 

[midlife]

Ask the mortgage provider for a redemption certificate. That says how much you owe. Pay it off and the house is yours.

The deeds are electronic so no paper changes hands.

I did it all on my natwest phone app.

 

[Pblakeney]

I put what was my mortgage payments into a pension. Or rather, I kept my money and got my employer to do it.
Tax efficient and helped me retire early. This was my experience, not financial advice.

 

[Seevio]

From memory I just went into the branch and said how much do I have to pay now to clear it.

Bear in mind that a mortgage is generally one of the cheaper debts so pay off things like credits cards or other loans first if you have them.

 

[DCLane]

+1 to @midlife 's approach.

My Christmas present in 2020 was to pay off the mortgage, with about a year's payments left on it at the time having been over-paying for several years.

I phoned the mortgage provider and asked for a total to pay it off in full on a specified date. They provided this, including an end fee, which we paid in full.

Deeds are all electronic these days, so no needing to leave a bit on the balance.

 

[richardfm]

Re. putting the property in your wife's name as well as yours, read this
https://www.gov.uk/joint-property-ownership
I think you will need a solicitor.

 

[PaulSB]

We paid off our mortgage about ten years early. I can't recall the process. I would offer the following:

• be cautious over ending your life policy. It may be a better deal than you can purchase today
• I put my mortgage payments into my pension pot. This helped us retire financially secure at 60 and 62
• consider the type of property ownership that's appropriate to your situation. There are two basic choices:
• joint tenants in which each party owns the property equally as a single unit
• tenants in common in which each party owns a defined share, for couples this is usually 50/50
• the type of ownership that's most appropriate depends on stage of life, wills, inheritance, children from a previous relationship and other factors. A solicitor will advise on the different options.
• as an example my wife and I are tenants in common. On first death the deceased's share passes into a trust fund. This is a choice we made to ensure provision for one son who needs lifetime care. It can, to an extent, protect the survivor from paying for social care in later life. Basically if the survivor owns half the property only that half can be assessed as part of the individual's assets.
• one should be careful with such an arrangement as local authorities can and do contest the arrangements if these are viewed as an attempt to avoid social care charges.
• with joint tenants ownership automatically passes to the survivor

 

[biggs682]

What's a mortgage

 

[Drago]

What's a mortgage

I remember them. The only 'loan' I ever took.

 

[T4tomo]

The fixed rate deal ends in January at which time I'll have around 6 payment left (at current rates).

The plan is I might just pay it up at that point using savings and the rebuild the savings using what would have been mortgage payments.

yes as @DCLane hints you need to be specific on the date, you possibly can't redeem without penalty whilst in your fixed rate period (but you might be able to as some products allow overpayment) but on the day it ends you can settle it up in full.

If you have paid off your mortgage and are an age where you can both access pension pots etc, ask yourself do you still need life cover? If you're still working you're likely to have death in service benefit anyway.