Completely clearing mortgage

dufferlover

Hi folks! So here's the story ....

We are very fortunate to be in a position to be able to completely clear our mortgage. We borrowed €130,000 over a 30 year term from AIB 6 years ago and now owe them approximately €115,000. We are paying a variable rate.

So what I need to know is, can we simply head in to them and clear it? And has anyone a ball park figure on what they are going to charge us to clear it?

Before anyone tells me to ring the bank, don't worry I will but just not tonight!!

TIA

Cyrus

dufferlover wrote: »

Hi folks! So here's the story ....

We are very fortunate to be in a position to be able to completely clear our mortgage. We borrowed €130,000 over a 30 year term from AIB 6 years ago and now owe them approximately €115,000. We are paying a variable rate.

So what I need to know is, can we simply head in to them and clear it? And has anyone a ball park figure on what they are going to charge us to clear it?

Before anyone tells me to ring the bank, don't worry I will but just not tonight!!

TIA

Yes you can and it will cost you what you owe them I.e. 115k plus any interest pending to be charged since your last payment

judeboy101

If you have cash in hand try to get a haircut.

AndrewJRenko

judeboy101 wrote: »

If you have cash in hand try to get a haircut.

Yes, it's always important to look your best when meeting with the bank manager.

NIMAN

judeboy101 wrote: »

If you have cash in hand try to get a haircut.

If they are a performing loan, never missed a repayment, and are a safe bet to continue paying, OP has no chance of getting it.

judeboy101

NIMAN wrote: »

judeboy101 wrote: »

If you have cash in hand try to get a haircut.

If they are a performing loan, never missed a repayment, and are a safe bet to continue paying, OP has no chance of getting it.

One can always hint that lack of a discount might lead to non performance.

Allinall

judeboy101 wrote: »

One can always hint that lack of a discount might lead to non performance.

The bank won’t pay any heed to “hints”.

OP, as said above, if you’re on a variable rate then you can just pay off the balance , plus any interest accrued . There’s no extra charge.

Don’t forget to cancel your mortgage protection policy.

Cyrus

judeboy101 wrote: »

One can always hint that lack of a discount might lead to non performance.

Are you for real

phormium

I know you said you will ring them, when you do you need to order a redemption figure. If you just rock up they more than likely will not have a figure right there and then to clear it. Now you could always lodge the bulk of it and wait for the redemption figure to clear the balance but easier to do one transaction. The redemption figure is usually only valid for a set period of time.

There is usually a small fee when clearing called a vacate fee, used to be around 50/60 quid, might vary with bank.

As for suggestions of discounts for paying off early, zero chance of getting a discount and 'hinting' at non performance will only give the staff a laugh at tea break as it would be hurting OP more than bank by ruining their credit rating. Bank would actually prefer to keep a mortgage as that's where they make their money, the interest is their income stream.

AndrewJRenko

You also need to start thinking about where you are going to store the deeds of the property, which is possibly a whole other debate.

Reati

AndrewJRenko wrote: »

You also need to start thinking about where you are going to store the deeds of the property, which is possibly a whole other debate.

Tesco bag In the attic.

Glenbhoy

The mortgage protection policy can be retained as a form of life insurance, have a look at premium and benefits, but I've found it to be pretty cheap v other forms of life protection, albeit that it's on a reducing benefit, but might be worth holding onto for another few years.
Re the deeds, scan them and save it in your Cloud. Don't use the cheap Tesco bags as they disintegrate (take a 1000 years to biodegrade my ####) in my experience, use a long life bag!!!

wowy

AndrewJRenko wrote: »

You also need to start thinking about where you are going to store the deeds of the property, which is possibly a whole other debate.

OP should get their solicitor to register their Title with Land Registry if not already done. Removes this issue of having to securely store Title documents.

stratowide

I paid off mine in a full a few years ago.It was on a variable rate at the time.
Just rang them up to send me out the forms then went in to my own bank and transferred the money.Fairly straightforward.
They sent out the deeds to me soon after which I then put in my solicitors safe at no charge.

hawkelady

Congrats op. Well done. I have heard bank managers say before that a mortgage is the cheapest money you can get, so if you are planning on getting a car or an extension, would you be better off using some of the cash you have and leave let's say , 10/20 k left on your mortgage , as opposed to clearing your mortgage and then going for a car loan which will be considerable higher interest rate ! This is all assuming you would like a new car or a home improvement !! Congrats anyway as it's nice to read some good news

Wheety

judeboy101 wrote: »

One can always hint that lack of a discount might lead to non performance.

Hello Mr. Bank Manager, I'm here to clear my Mortgage.
Oh very good. Well done. I'll just get some figures.
Any chance of a discount?
What?
A discount as I'm clearing the whole Mortgage.
No.
But maybe the loan will become a nonperforming one
But you just said you're here to clear the whole lot.
Oh yeah. :P

AndrewJRenko

wowy wrote: »

OP should get their solicitor to register their Title with Land Registry if not already done. Removes this issue of having to securely store Title documents.

How about Registry of Deeds areas "The area selected is not registered with the Land Registry. Information about this property may be available from the Registry of Deeds" ??

seamie78

wowy wrote: »

OP should get their solicitor to register their Title with Land Registry if not already done. Removes this issue of having to securely store Title documents.

by doing this do you remove the need for title deeds, have mine lying around the house somewhere not ideal I know

raspberrypi67

Dont forget to brew a strong coffee before you go in....O, and drink it....

doolox

This a thousand times over especially if you are over 60 when you would find it hard to get a mortgage or you are not in permanent employment now or expect not to be in the near future.

Keep a certain amount of money aside for such future needs.

Then again you may be in the very good position to not need loans in the future.

manonboard

Congratulations OP.

I'm not quite in the same boat, but i am closing in quickly enough..

I would like to echo the previous sentiment of analysing future loans, money requirements. You are in a very very good position, and its important to maximise this.

As mortgage is the cheapest money you can borrow. It's worth considering is it financially prudent to pay it back?

I make 8-12% with my money in my various investments.
I pay 3% on my borrowed money. Financially it makes me profit to not pay back that loan.

It's an odd one. The feeling of clearing the mortgage might be worth it to you though. It certainly adds flexibility in other decisions if they are the type you are interested in.

Are you getting any interest at source payments? Any help from any schemes that would also be ended should you pay it off?


short answer: If you are variable rate, you can literally just walk in and pay off the mortgage easy peasy. I frequently have sent in letters with bank drafts doing the same thing.

If fixed rate, there will be a charge (6 months interest on existing balance roughly)

Cyrus

manonboard wrote: »

If fixed rate, there will be a charge (6 months interest on existing balance roughly)

not quite correct any more, there is a fixed formula now and its the lower of 6 months interest or the calculation on the fixed formula (based on interbank deposit rates)

for example i broke out of a fixed rate mortgage last month with no break fee as interbank rates were steady over the period.

ted1

hawkelady wrote: »

Congrats op. Well done. I have heard bank managers say before that a mortgage is the cheapest money you can get, so if you are planning on getting a car or an extension, would you be better off using some of the cash you have and leave let's say , 10/20 k left on your mortgage , as opposed to clearing your mortgage and then going for a car loan which will be considerable higher interest rate ! This is all assuming you would like a new car or a home improvement !! Congrats anyway as it's nice to read some good news

Without a mortgage it’s easy to save cash for big buys.

If you are paying 1k a month , and clear the mortgage , in ten minutes you could save 10k.

surrender monkey

AndrewJRenko wrote: »

How about Registry of Deeds areas "The area selected is not registered with the Land Registry. Information about this property may be available from the Registry of Deeds" ??

If your property is showing this on land registry maps this means you have an "unregistered title" . It's not necessarily a bad thing but when the property is sold for value the next owner will have to apply for first registration of the title in land registry. It's a bit more work for the purchasers solicitor also.

AndrewJRenko

surrender monkey wrote: »

If your property is showing this on land registry maps this means you have an "unregistered title" . It's not necessarily a bad thing but when the property is sold for value the next owner will have to apply for first registration of the title in land registry. It's a bit more work for the purchasers solicitor also.

Thanks for the clarification, so it looks like no immediate benefit for me to engage a solicitor to do this now? It probably makes more sense to leave it to my executors, given that I've no plans to sell or move.

Fian

hawkelady wrote: »

Congrats op. Well done. I have heard bank managers say before that a mortgage is the cheapest money you can get, so if you are planning on getting a car or an extension, would you be better off using some of the cash you have and leave let's say , 10/20 k left on your mortgage , as opposed to clearing your mortgage and then going for a car loan which will be considerable higher interest rate ! This is all assuming you would like a new car or a home improvement !! Congrats anyway as it's nice to read some good news

This is important.

We paid off our mortgage early on the family home. Subsequently we bought a buy to let. the mortgages we took out on those is far more expensive than the mortgage we had on our own home. Now granted we can write off 80% of the interest against tax, but even so I suspect we would have been better off keeping the mortgage on family home instead.

surrender monkey

seamie78 wrote: »

by doing this do you remove the need for title deeds, have mine lying around the house somewhere not ideal I know

No ! There will be documents like architects Certs, receipts for financial contributions, requisitions on title etc in that bundle that your solicitor or bank will require if selling on or re mortgaging. Get a fire proof box if keeping them at home.

manonboard

Cyrus wrote: »

not quite correct any more, there is a fixed formula now and its the lower of 6 months interest or the calculation on the fixed formula (based on interbank deposit rates)

for example i broke out of a fixed rate mortgage last month with no break fee as interbank rates were steady over the period.

Yep. You are correct. Thanks

surrender monkey

AndrewJRenko wrote: »

Thanks for the clarification, so it looks like no immediate benefit for me to engage a solicitor to do this now? It probably makes more sense to leave it to my executors, given that I've no plans to sell or move.

Well if you currently have a mortgage on the property then the bank has the title deeds so you wouldn't be able to make a first reg application anyway! If you have no plans to sell or move then I wouldn't worry about it really. It would be the purchaser of the property responsibility

Claw Hammer

surrender monkey wrote: »

Well if you currently have a mortgage on the property then the bank has the title deeds so you wouldn't be able to make a first reg application anyway! If you have no plans to sell or move then I wouldn't worry about it really. It would be the purchaser of the property responsibility

One of the advantages of making an attempt at first registration is that if there is a flaw or something missing in the title, it will come to light. It might be easier to sort out now rather than having snags crop up at the time of sale or remortgage.

jca

AndrewJRenko wrote: »

You also need to start thinking about where you are going to store the deeds of the property, which is possibly a whole other debate.

Solicitors office, no debate required.

surrender monkey

Claw Hammer wrote: »

One of the advantages of making an attempt at first registration is that if there is a flaw or something missing in the title, it will come to light. It might be easier to sort out now rather than having snags crop up at the time of sale or remortgage.

Is it possible though if the bank have the deeds? Like will they hand them over on atr for the purposes of first reg?

Claw Hammer

surrender monkey wrote: »

Is it possible though if the bank have the deeds? Like will they hand them over on atr for the purposes of first reg?

Of course they will. The bank will give out the deeds to a solicitor on an accountable receipt. It happens all the time when there is an intended sale. The solicitor has to get the deeds in order to draw up the sale contract. The bank are usually more than happy that the title is registered along with their charge.

surrender monkey

Claw Hammer wrote: »

Of course they will. The bank will give out the deeds to a solicitor on an accountable receipt. It happens all the time when there is an intended sale. The solicitor has to get the deeds in order to draw up the sale contract. The bank are usually more than happy that the title is registered along with their charge.

I am aware of how property sales take place as I work in the area. Thing is atr is 6 months first reg can drag on for a couple of years ! So I've not seen someone do this? People generally don't care or realise the difference! Between unreg or reg. In any event the particular poster has no plans to sell or mortgage so if it was me I would just leave it. It's quite a hefty bill for someone !

Claw Hammer

surrender monkey wrote: »

I am aware of how property sales take place as I work in the area. Thing is atr is 6 months first reg can drag on for a couple of years ! So I've not seen someone do this? People generally don't care or realise the difference! Between unreg or reg. In any event the particular poster has no plans to sell or mortgage so if it was me I would just leave it. It's quite a hefty bill for someone !

There is nothing to stop anyone doing it. Some people do it because they like to have their affairs in order. It would be unusual for someone with a mortgage to bother, usually it is an older person with mortgage paid off, who wants their affairs to be simplified and in order.

Hack12

Two.options:
(1) You get a redemption figure from the bank and then go and pay it in your branch. Interest is charged on a mortgage based on the "interest rest" which for most modern mortgages is daily, weekly or monthly. This benefits you as you are paying interest on a reducing balance each month. Mortgages are NOT frontloaded with interest like some personal loans.
(2) Same as above but instead of you doing the work you get a solicitor to do it for you and they can ensure the mortgage deed is cleared and the deeds of the property are clear. Some offer the facility to store deeds for you so reducing risk of being destroyed etc.

Either option should be done in a week for redemption figures and payment. Generally a month or so for deeds to be sorted.

jimmycrackcorm

judeboy101 wrote:

One can always hint that lack of a discount might lead to non performance.

And destroy your credit record for five years.

judeboy101

jimmycrackcorm wrote: »

judeboy101 wrote:

One can always hint that lack of a discount might lead to non performance.

And destroy your credit record for five years.

If you have that kind of sauce lying around you don't need to worry about credit records.

Franz Von Peppercorn

judeboy101 wrote: »

If you have that kind of sauce lying around you don't need to worry about credit records.

If that’s all the “sauce” they have they do. Your suggestion was nonsense.

denismc

Just wondering what interest rate you are paying, if it is low then would you consider investing your money in shares or some other investments ?

shakencat

denismc wrote:

Just wondering what interest rate you are paying, if it is low then would you consider investing your money in shares or some other investments ?

Jeez. My parents did that and now one is retired with illness and the other has to work their balls off to cover the mortgage that was remortgaged in the good aul days - children pay for food and bills it's so tight.

Lost everything in shares.

I would never ever ever recommend it.

Yes my parents could have been millionaires. But jeez, it's not worth the risk they took, especially with the outcome they've recieved.

I'm trying to pay off my mortgage asap too so I can never fall into the same trap they're in!!

NIMAN

shakencat wrote: »

Jeez. My parents did that and now one is retired with illness and the other has to work their balls off to cover the mortgage that was remortgaged in the good aul days - children pay for food and bills it's so tight.

Lost everything in shares.

I would never ever ever recommend it.

Yes my parents could have been millionaires. But jeez, it's not worth the risk they took, especially with the outcome they've recieved.

I'm trying to pay off my mortgage asap too so I can never fall into the same trap they're in!!

Probably agree with you.
Yes people do say that a mortgage is the cheapest % loan you'll ever get, but there is something to be said for having no mortgage, and piece of mind that your house is bought and paid for.

Best of luck.