Paying off the mort...
 

  You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more

[Closed] Paying off the mortgage

20 Posts
16 Users
0 Reactions
64 Views
Posts: 488
Free Member
Topic starter
 

I've been slowly overpaying the mortgage to the point now where I could pay it off completely with my savings.
Some time ago I read on here that a couple of people had reduced theirs to a couple of grand or so, at which point the Building society/Provider had waived the small(ish) amount remaining.

So my question is, is this likely and if so what sort of figures are we talking to get it waived and save a bit of cash? Much as i'd like to clear it all, I don't want to do that and miss the chance of some cashback!


 
Posted : 05/01/2019 1:39 pm
Posts: 0
Free Member
 

So my question is, is this likely

I can’t see any scenario where they would feel the need to let anyone off a debt that they were willing, and could afford, to repay.

Maybe I am missing something obvious though ?


 
Posted : 05/01/2019 1:46 pm
Posts: 3826
Full Member
 

I seem to remember this and the amounts were very small (tens of pounds) that people left on the mortgage so that they could use the mortgage as a low interest loan facility. I think the mortgage company then offers to close the mortgage since admin costs outweigh interest payments received.


 
Posted : 05/01/2019 1:51 pm
Posts: 0
Free Member
 

Agreed; no way I could ever imagine then letting you off a tenner let alone something more significant ... although in typical STW style someonevwill claim to have been allowed to not pay back the remaining £12k of their mortgage😂


 
Posted : 05/01/2019 1:52 pm
Posts: 45504
Free Member
 

One phone call will tell you the costs and what they would waive.

My annual statement has the repayment in full cost, with early exit fee spelled out.


 
Posted : 05/01/2019 1:52 pm
Posts: 488
Free Member
Topic starter
 

tonyg2003, yes that is kind of the line I remember. I thought it was a bit more than tens of pounds but i can't be sure.


 
Posted : 05/01/2019 2:03 pm
Posts: 6209
Full Member
 

Or get an offset mortgage and stick it at zero until you need some cash?


 
Posted : 05/01/2019 2:23 pm
Posts: 0
Free Member
 

I had mine technically paid off due to peanuts left in it and Nationwide suddenly found some cash they owed me due to miscalculation somewhere. They paid it into the mortgage account.

Though I got them to reverse that as I wanted the mortgage open with a small amount remaining and small interest payments, so I've got a mortgage to use for next house. In theory it's easier to re-use than re-apply, or at least that's what I'd been advised in the past. Plus it's an overpayment account with a large balance in overpayments that I can borrow back if I need to.

Though I've been planning to move for the last 15 years and still not got round to it. I've got 2 years left if I keep the mortgage open, and it's kind of my deadline for moving before I'm getting too old to afford a mortgage that I can pay off by retirement. Unless I move somewhere much cheaper.


 
Posted : 05/01/2019 2:46 pm
Posts: 43345
Full Member
 

No longer necessary, but I left a few pounds in my mortgage as the bank then held the deeds free of charge. Once paid off they'd send them to you and that normally meant paying someone else to hold them safe for you.


 
Posted : 05/01/2019 2:51 pm
Posts: 0
Free Member
 

Why not ask your Building Society?
They do have a better idea than all the experts on here.


 
Posted : 05/01/2019 2:54 pm
Posts: 0
Free Member
 

that normally meant paying someone else to hold them safe for you.

Or just chuck them in the box with all the other documents. If worse ever happens, and you lose the box .. its only about £60 to get replacements.


 
Posted : 05/01/2019 4:38 pm
Posts: 11884
Full Member
 

Or get an offset mortgage and stick it at zero until you need some cash?

That's what I've done. The monthly payments come out if the savings side so they are both slowly diminishing over time, but there's still a chunk of cash there for emergencies.


 
Posted : 05/01/2019 5:10 pm
Posts: 4170
Free Member
 

I thought deeds weren't used now, isn't it just down to Land Registry? When we paid off our mortgage we didn't get any deeds, but we did write to Land Registry to confirm our ownership, since apparently there are cases where others have sneaked in and fraudulently registered their ownership of your house.


 
Posted : 05/01/2019 5:21 pm
Posts: 43345
Full Member
 

Can folk just not read now?

No longer necessary,


 
Posted : 05/01/2019 5:22 pm
Posts: 0
Free Member
 

Just picking up on something Kenny said about being able to afford a mortgage In later life. These days is there an upper age limit lenders generally expect a mortgage to be paid off? We are 47 and 40 and were hoping for a 30yr mortgage.


 
Posted : 05/01/2019 5:27 pm
Posts: 0
Free Member
 

Just picking up on something Kenny said about being able to afford a mortgage In later life. These days is there an upper age limit lenders generally expect a mortgage to be paid off? We are 47 and 40 and were hoping for a 30yr mortgage.

I think it’s becoming more of an issue - we have just taken a mortgage with the Halifax, (both aged 36) and asked to take a 35yr mortgage so taking it to when we’d be 71 - they would only give us a 33yr mortgage, meaning we’d finish repaying at 69.

A


 
Posted : 05/01/2019 5:41 pm
Posts: 13192
Free Member
 

I work for a bank, in the mtg department. Our upper age limit is 75. If you want to use your employed income then you have to ensure you will have that income for the term of the mortgage you want. When you enquire tell them you intend to retire at 75 and let them challenge you there is no fixed retirement age so it's whatever you tell them. As long as it makes sense... i.e. not a brickie working to 80 but if you're in an office sitting on your arse who's to say you won't retire at 75?


 
Posted : 05/01/2019 5:45 pm
Posts: 0
Free Member
 

if you’re in an office sitting on your arse who’s to say you won’t retire at 75?


 
Posted : 05/01/2019 5:48 pm
Posts: 0
Free Member
 

We kept a couple of grand on just to keep a credit history going. Apparently if you have no debts then you’re potentially a bad risk as you can’t prove any history of paying on time..


 
Posted : 05/01/2019 6:42 pm
Posts: 4170
Free Member
 

Can folk just not read now?

Sorry, I did read "No longer necessary" but I thought you were saying leaving money in the mortgage was no longer necessary, not that deeds are longer necessary. Does that apply to England as well as Scotland, do you know?


 
Posted : 05/01/2019 6:46 pm
Posts: 0
Free Member
 

Bank sent me the deeds some time ago and wasn't paid off. They said they're not needed anymore so I can have them. That's England based mortgage.


 
Posted : 05/01/2019 9:52 pm

6 DAYS LEFT
We are currently at 95% of our target!