Costs involved in paying off my Mortgage Early

R

Romero

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Before you ask I did lookk in the FAQ section but the link to this is broken!

I want to clear my First Active Variable rate Mortgage in the next 6 months and want to know at the end of last year I owed just over 76000 Euros on a 25 year mortgage that I have been paying for the last 7 years, so my question is if I walk into a bank with a cheque for that amount is that acceptable or will I have to pay more then that.

Any help and advice appreciated

Thanks

Romero
 
The interest yet to be posted;
Any 'vacate' costs on the deed.
Otherwise fairly straight on a variable.
Ask them for a 'redemption quote'.
 
Just before you clear it ask the lender how much is outstanding (including any accrued interest) and then you should just need a cheque for that amount. No additional (early) redemption charges can apply on an owner occupier variable rate mortgage. In order to vacate the mortgage (i.e. to get the lender's name and interest in the property removed from the title deeds) shouldn't cost any more than about €50 I reckon (cost me about IR£30 a few years back). The lender may offer to do this for you for a small fee but you can always do it yourself by attending the relevant Land Registry/Registry of Deeds office (mine was Setanta House, Nassau Street, Dublin 2) with the deeds to get them updated. Buy yourself a celebratory drink with the money you save (just don't leave the deeds in the pub!). :) After that all you need to do is find a place to store the deeds safely. This seems to becoming a bit more difficult these days with some (many?) lenders, solicitors and banks declining to offer a safe keeping service. Don't forget to deal with your mortgage protection life assurance policy - either keeping it up if you can and want or cancelling any premium payments if you do not. Normally the life assurance underwriter will contact you with details of your options on this front. If not you should contact them possibly via the lender. Good luck. Being mortgage free is a great feeling and I never regretted getting to that stage myself.
 
The balance outstanding shown on your statement will generally be higher than the redemption value. This is because the balance shown includes the interest payable between now and the end date of your mortgage. Also remember to contact your insurer to have the bank removed from your policy as an interested party.
 
I think the Land Registry will 'store' the deeds for ya . They basically flag themselves as storage on their own computer so they know the definitive copy is what they have not the paper one .

They store for solicitors like that .
 
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