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The steps involved in paying a mortgage off in one hit?
A few of us are hoping to help an elderly relative pay off their mortgage early. We were planning on giving him the full amount remaining on his mortgage so he can pay it all off in one go and be done with it but I'm not 100% on how you would do this?
He is on a repayment mortgage, pays it off monthly via direct debit from one bank but the mortgage is with another bank.
If I understand right, I think he would first need to contact his mortgage provider and request a redemption statement.
After receiving this statement, does he then go to the bank he usually makes his mortgage repayments from and request that they send his mortgage provider the full amount? While there, should he cancel the monthly direct debit payments to his mortgage provider or wait until they next contact him?
Thanks in advance for any replies.
He is on a repayment mortgage, pays it off monthly via direct debit from one bank but the mortgage is with another bank.
If I understand right, I think he would first need to contact his mortgage provider and request a redemption statement.
After receiving this statement, does he then go to the bank he usually makes his mortgage repayments from and request that they send his mortgage provider the full amount? While there, should he cancel the monthly direct debit payments to his mortgage provider or wait until they next contact him?
Thanks in advance for any replies.
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This was to avoid an end of term fee (deed release fee, I think), plus they realised the bank would never chase the £1, so in effect the house was paid off.
I've always believed this to be correct too.
It can be transferred from any account, so if someone else is paying they can do so directly.
Cancel at the same time.
It ensured "deeds retention".
They retained the deeds on your behalf otherwise they were returned to you and you had to find a safe storeage option - under the bed or, more often, pay your solicitor to hold them.
That said there may be other legal documents stored alongside the Deeds that you do require, such as guarantees for the property.
If that is the case you can usually get copies, but you may have to pay a fee and it might delay completion.
I would suggest asking your former lender if it has retained any documents at all relating to your property and if so, request it returns them to you."
My bank sent the 'deeds' (Land Certificate or Charge Certificate I forget which) to me several years ago, after they became irrelevant to the continuing mortgage. So it's possible that the subject of this thread was sent any relevant paper documents and that there's nothing stored by them anyway (if his lender adopted a similar policy to my bank).
I have kept my valueless certificate though, and not even 'under the bed', as it's sometimes useful to be able readily to refer to the plans and any covenants.
We also avoided a £250 early payment fee.
same with me, I can continue to borrow up to my original mortgage amount but it does depend on your mortgage. I know many don't allow it.
A huge package arrived through normal post a few weeks later with all the docs. That was that.