Process of paying off your mortgage in the UKWhen it’s time to pay off your mortgage, you’ll need to get in touch with your lender and solicitor. This is so they can start the process of paying off your mortgage, including getting your redemption statement and handling the title deeds. Here’s how the process works:
- Requesting a mortgage redemption statement - a redemption statement usually contains your current mortgage balance, outstanding interest, daily rate of interest, and any early repayment charges if applicable.
- Check your property is registered - check your property is registered with the Land Registry. This provides protection against squatting and fraud. It’s worth noting that your home might not be registered if you owned it before 1990, and if you have to register it, you’ll need to pay a fee.
- Electronic notification of discharge - your mortgage lender should send an electronic notification of discharge (END) to the Land Registry to remove the registered charge. You might also be asked to send a Form DS2E to the Land Registry. Check with your solicitor if you’re unsure.
- Get a copy of the deeds - your solicitor or mortgage lender might have the deeds to your home, but if they don’t, it’s best to request a copy for safekeeping.
Benefits of a paid off houseThere are many advantages to paying off your mortgage, including:
- Money to explore more of the world
- The opportunity to boost your pension
- Enjoying luxury items
- Eating out more
- The means to help a younger family member get on the property ladder
- A chance to build an investment portfolio