Paying off mortgage
Discussion
Just feel the DD going as long as you can. When you get down to owing £5. Reduce the direct debit to 12p a month.
I had to keep.our ticking over at 12 quid a month for 3 years as I was waiting for a 10 year fix to end. When it got down to zero, they sent me letter saying they wanted £300 for returning the deeds. I wrote back saying that as they are electronically held by the Land Registry, how does that work? They sent me thier copy free about 6 months later.
I'm about to pay off the mortgage on a BTL in April with a lump sum of £61k
How best to send them the cash ? Apparently they wont take a direct debit of £61k... can only transfer £20k a day from each account will take 2 days.
I had to keep.our ticking over at 12 quid a month for 3 years as I was waiting for a 10 year fix to end. When it got down to zero, they sent me letter saying they wanted £300 for returning the deeds. I wrote back saying that as they are electronically held by the Land Registry, how does that work? They sent me thier copy free about 6 months later.
I'm about to pay off the mortgage on a BTL in April with a lump sum of £61k
How best to send them the cash ? Apparently they wont take a direct debit of £61k... can only transfer £20k a day from each account will take 2 days.
Pit Pony said:
Just feel the DD going as long as you can. When you get down to owing £5. Reduce the direct debit to 12p a month.
I had to keep.our ticking over at 12 quid a month for 3 years as I was waiting for a 10 year fix to end. When it got down to zero, they sent me letter saying they wanted £300 for returning the deeds. I wrote back saying that as they are electronically held by the Land Registry, how does that work? They sent me thier copy free about 6 months later.
I'm about to pay off the mortgage on a BTL in April with a lump sum of £61k
How best to send them the cash ? Apparently they wont take a direct debit of £61k... can only transfer £20k a day from each account will take 2 days.
It was a few years ago that I cleared mine, but I did it in branch, and they transferred the whole lot to RBS in one go (about £150k, IIRC).I had to keep.our ticking over at 12 quid a month for 3 years as I was waiting for a 10 year fix to end. When it got down to zero, they sent me letter saying they wanted £300 for returning the deeds. I wrote back saying that as they are electronically held by the Land Registry, how does that work? They sent me thier copy free about 6 months later.
I'm about to pay off the mortgage on a BTL in April with a lump sum of £61k
How best to send them the cash ? Apparently they wont take a direct debit of £61k... can only transfer £20k a day from each account will take 2 days.
interstellar said:
What am I missing here? Why not just clear it, what’s the advantage of having a £12 a month DD?
I would pay it off. I cleared mine in Nov and didn’t think twice about sending them every penny.
What did I miss?
In the olden days, when deeds were in paper form, if you kept a small balance owing, then the bank would keep hold of the deeds, thus saving you the risk/cost of storing them yourself.I would pay it off. I cleared mine in Nov and didn’t think twice about sending them every penny.
What did I miss?
Deeds are electronic now, so it's no longer an issue.
I’m paying my mortgage balance in April. Fixed term ends 31st March.
Only obstacles I see is max allowed transfer from my bank is 25k a day. Can do up to 100k in branch, however I’m working overseas, so can’t. I’ll need to pay it over a few days, plan to phone up for the closing balance on the day I pay it down.
Hadn’t considered keeping a bit of minimum balance, what for?
I had read about your credit score suffering as a result of not having a mortgage on file, however I’m ok with that as I doubt I’ll want to take any further loans.
Financial freedom sounds just great.
Only obstacles I see is max allowed transfer from my bank is 25k a day. Can do up to 100k in branch, however I’m working overseas, so can’t. I’ll need to pay it over a few days, plan to phone up for the closing balance on the day I pay it down.
Hadn’t considered keeping a bit of minimum balance, what for?
I had read about your credit score suffering as a result of not having a mortgage on file, however I’m ok with that as I doubt I’ll want to take any further loans.
Financial freedom sounds just great.
Having a small mortgage on your property can help prevent land registry fraud due to the underlying charge, only really an issue on BTL's and empty properties though.
https://www.bbc.co.uk/news/uk-england-beds-bucks-h...
https://www.bbc.co.uk/news/uk-england-beds-bucks-h...
Depending upon your mortgage provider you can redraw any overpayments you have made. So keeping it open at a nominal balance would give access to the cash again.
Obviously at the cost of putting the mortgage back up.
For the minimal cost in keeping this open it seems like a good “rainy” day contingency.
Obviously at the cost of putting the mortgage back up.
For the minimal cost in keeping this open it seems like a good “rainy” day contingency.
thebursar said:
A total anti-climax.
I took my mortgage out in August 2009 and cleared it in March 2017, so just under eight years. Obviously, clearing it didn't make total sense in such a low interest environment throughout those eight years, but it was the first part of my 'FIRE' journey and I was frankly just keen to see the back of it.
We overpaid from day one and as our earnings grew, we just upped and upped the amount of over payments (where allowed.) In the final two years, we had a completely flexible mortgage with no cap on over payments, so we were often overpaying 10-20 x the standard monthly mortgage payment (which , by that time was quite low.)
Not sure what I was expecting, but I had a short and to the point letter from the mortgage company a week or so after I'd made the final payment confirming the account had been closed, and a month or so later a letter from the Land Registry to confirm that they had amended their records now there was no mortgage linked to the property.
Obviously it's nice not to have the big outgoing that most people have, but to be honest it's very easy to forget as you just get used to it and re-balance.
Strange that you’re underwhelmed, in my mind it’s going to allow for; further pension contributions, extra cashflow for more holidays, no longer a dependency of financial institutions, security of if anything ever happens no one is turning up to turf us out our home. I took my mortgage out in August 2009 and cleared it in March 2017, so just under eight years. Obviously, clearing it didn't make total sense in such a low interest environment throughout those eight years, but it was the first part of my 'FIRE' journey and I was frankly just keen to see the back of it.
We overpaid from day one and as our earnings grew, we just upped and upped the amount of over payments (where allowed.) In the final two years, we had a completely flexible mortgage with no cap on over payments, so we were often overpaying 10-20 x the standard monthly mortgage payment (which , by that time was quite low.)
Not sure what I was expecting, but I had a short and to the point letter from the mortgage company a week or so after I'd made the final payment confirming the account had been closed, and a month or so later a letter from the Land Registry to confirm that they had amended their records now there was no mortgage linked to the property.
Obviously it's nice not to have the big outgoing that most people have, but to be honest it's very easy to forget as you just get used to it and re-balance.
I’m buzzing at the thought, will see how quickly that disperses.
skeeterm5 said:
Depending upon your mortgage provider you can redraw any overpayments you have made. So keeping it open at a nominal balance would give access to the cash again.
Obviously at the cost of putting the mortgage back up.
For the minimal cost in keeping this open it seems like a good “rainy” day contingency.
Didn’t think of that, interesting !! Obviously at the cost of putting the mortgage back up.
For the minimal cost in keeping this open it seems like a good “rainy” day contingency.
Bluequay said:
Having a small mortgage on your property can help prevent land registry fraud due to the underlying charge, only really an issue on BTL's and empty properties though.
https://www.bbc.co.uk/news/uk-england-beds-bucks-h...
Set up a notification with the Land Registry. Easy and free.https://www.bbc.co.uk/news/uk-england-beds-bucks-h...
https://www.gov.uk/guidance/property-alert
I’m only allowed to overpay 10% of the outstanding balance every 12 months if I want to avoid early repayment fees (I do) so I’m just letting it run and using any spare cash for fun stuff like cars and holidays. The interest rate is fixed at 1.24% for the remaining term so it’s not costing me shedloads in interest.
I think mentioned above.
Is it an offset mortgage thus any savings cuts the monthly amount of interest.
Thus keeping it going means you still have access to the original mortgage amount for other things.
To the other poster that paid it off but felt that it didn't make a difference in the general day to day, yep!
Before that idiot Truss, the mortgage was the least of our worries. Less than the food bill, less than the wine bill.
Now it's double the energy bill which in itself is very high now.
Is it an offset mortgage thus any savings cuts the monthly amount of interest.
Thus keeping it going means you still have access to the original mortgage amount for other things.
To the other poster that paid it off but felt that it didn't make a difference in the general day to day, yep!
Before that idiot Truss, the mortgage was the least of our worries. Less than the food bill, less than the wine bill.
Now it's double the energy bill which in itself is very high now.
Edible Roadkill said:
Strange that you’re underwhelmed, in my mind it’s going to allow for; further pension contributions, extra cashflow for more holidays, no longer a dependency of financial institutions, security of if anything ever happens no one is turning up to turf us out our home.
I’m buzzing at the thought, will see how quickly that disperses.
Ours was £200/mth at the end so it didn’t make a right lot of difference.I’m buzzing at the thought, will see how quickly that disperses.
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