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CrashAndBurn

670 posts

Ultimate Geek


#233345 12-Apr-2018 09:14
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I have a time deposit maturing soon which would allow me to pay the remaining balance on my mortgage in full. However I have no clue as to what is the process and if there is any cost involved. I have already emailed my bank but decided to ask here to get some ideas. I checked online and some says it needs to go through my solicitor which I am not sure is really needed as am sure that will incur a cost? I mean I am on the impression that once I transfer the full amount then I would just get the deed/title to my property with a note that there is no mortgage against it.

 

 


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kryptonjohn
2523 posts

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  #1994650 12-Apr-2018 09:30
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CrashAndBurn:

 

Currently on fixed which would finish a week before my term deposit mature hence I am thinking of not re-fixing and just pay it off completely.

 

 

Well that's good, no chance of a break fee. Your fixed mortgage should just convert to a floating rate if you don't re-fix it. So you can pay off the balance for no fee whatsoever and your debt is gone  - just like paying off an overdraft. What will remain is that the bank still holds a security over your house, even though you don't owe them anything. Pay a small legal fee to get that removed.

 

Alternatively you can just leave the bank holding the security. Other than needing to be removed when you sell the house it's doing no harm and means that if you need to borrow a lot of money in a hurry, then it will be a bit  easier.

 

 


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