"How" to pay off mortgage

[Steve Campbell]

Getting to the stage where I'm looking at paying off remaining mortgage. In my head, that meant paying it down to a nominal sum so I didn't have to deal with any deeds or paperwork.

My wife says this is old thinking, and we should pay the entire amount off.

What considerations should I be thinking about ? I have no clue really !

[55palfers]

Deeds are held electronically at Land Registry now.

The only paperwork is the electronic funds transfer authorisation.

[Dr Jekyll]

55palfers said:

Deeds are held electronically at Land Registry now.

The only paperwork is the electronic funds transfer authorisation.

+1

I just got a letter from the lender saying 'we no longer have a charge over the property'. Bit of an anti-climax actually.

[egor110]

We did this , this year.

Literally went into the nationwide and asked what i had left on the mortgage then went across to my current account bank and electronically send the money over .

Total anti climax , about 10 days after we got a letter saying the mortgage balance was zero and that was that .

[Steve Baker]

Presumably life policies etc taken out to cover the mortgage can be cancelled as well ?

[egor110]

Steve Baker said:

Presumably life policies etc taken out to cover the mortgage can be cancelled as well ?

I guess it depends what savings you have ?

If you died in a months time could your wife live/support the children even without a mortgage to pay ?

[doogle83]

If the policy only covers the mortgage then surely you don't need it...

Someone told me that it's good to keep a small mortgage to keep your credit score up... Is there much truth in that?!

[egor110]

doogle83 said:

If the policy only covers the mortgage then surely you don't need it...

Someone told me that it's good to keep a small mortgage to keep your credit score up... Is there much truth in that?!

You can use a credit card to pay for shopping /petrol then pay it off end of the month plus your mobile phone bill counts.

There's a guy at work in his mid 50's who keeps his mortgage going just incase he needs to get a new kitchen or build a conservatory and stick it on the mortgage .

If you can get rid of it , why bother paying interest to keep it going , pay it off .

Imagine if you lost your job if say there's a post brexit crash , how much easier would it be not having to fork out for a mortgage each month.

[Caddyshack]

It is easier to fraudulently sell a property that you do not own if there is no mortgage in place but that is the only reason to keep a mortgage going, it doesn't really do a lot for the cree]dit score these days.

[chibbard]

Yep, total anticlimax paying off the mortgage. However, the satisfaction is very comforting. The only problem I have is the thought of wanting to move house and taking on a mortgage again is not something I would want to do. Although, our house is perfectly adequate for our needs. Congratulations on the acheivement though!!

[Sir Bagalot]

If you keep £1 owing then the account is still open and it's a simple phone call to get an advance.

[Caddyshack]

Sir Bagalot said:

If you keep £1 owing then the account is still open and it's a simple phone call to get an advance.

No it's not, it used to be but now every mortgage must pass income and affordability stress tests, you are in for a 2 hr interview (unless a broker cuts that down for you) at least with full income proof, banks statements etc...

[thekingisdead]

Caddyshack said:

It is easier to fraudulently sell a property that you do not own if there is no mortgage in place but that is the only reason to keep a mortgage going, it doesn't really do a lot for the cree]dit score these days.

That's v useful to know. Recently paid mine off and the letter from the LR mentioned signing up to a service that would notify you of suspicious activity regarding the title. Makes sense now, I'll sign up to it

[Steve Campbell]

Thanks all. Seems the wife was right (she usually is when it comes to money matters :-) )

Cheers, S

[anonymous-user]

Caddyshack said:

Sir Bagalot said:

If you keep £1 owing then the account is still open and it's a simple phone call to get an advance.

No it's not, it used to be but now every mortgage must pass income and affordability stress tests, you are in for a 2 hr interview (unless a broker cuts that down for you) at least with full income proof, banks statements etc...

Not necessarily if it's a flexible mortgage. I'm with first direct with the mortgage paid down to zero. I can draw the whole lot out again tomorrow if I want. All they care about is that is paid off on my 65th birthday. When I paid off the last pound they asked me if I wished to leave it open or make it paid off. Their service has been very good.