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Mortgage Redemption Query

I've done a search but all the results just seem to want to sell you a mortgage!

I have a 25 yr endowmnet mortgage due to mature in 6 years time.

It's only a small mortgage (around £20K) and I am fortunate to have enough funds to pay it off now, let the endowment policy mature and collect the proceeds of that in 6 years.

Whilst in town the other day, I popped into the building society (Leeds BS), explained my position and asked what I need to do to redeem the mortgage early.

Girl said she'd have to make a phone call then came back (ages later!)and told me the amount required for redemption.

Me: "So what do I do - just give you a cheque for that amount?"

Girl: "Yes, that would be fine"

Didn't have time to question her as I was now running late so will have to go back another day.

I would like to be forewarned before going back as this seems just a bit too simple for a financial transaction ;-)

I know there's the option of asking the BS to hold the deeds for a small fee but is there anything else I'm missing?

Thanks a lot,

Jeff, Newcastle

Reply to
Jeff Taylor
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It should be, provided you aren't on a fixed rate or discounted rate mortgage.

The redemption figure will only be valid for a certain period of time, so you may need a new one.

One option is to leave a very small amount outstanding on the mortgage so they continue to hold the deeds. The interest may be cheaper than the deed holding fee. However, with the new electronic registration of land interests, deeds are not as important as they used to be.

Reply to
Jonathan Bryce

mortgage so

The other advantage is you may miss out on conversion/takeover payments if you pay off the mortgage - you usually need 100 or so outstanding to still be regarded as a borrowing member, might be worth paying 50-60p a month in interest for the chance of a windfall.

Reply to
Andy Pandy

Many thanks Jonathan and Andy.

Very helpful replies.

Cheers,

Jeff

Reply to
Jeff Taylor

I did mine back in about June, and this was pretty much it - simply transferred the money from one account to the mortgage account (both with the same bank, Halifax).

The online banking side still showed an outstanding balance for a couple of weeks though until they'd updated all their records.

Reply to
Colin Wilson

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