Online banking and final loan payment

veryangryman

What happens to the account on the banking interface when you pay the last bit (plus invisible interest that they havent totted up yet) in your experience.

Paid mortgage off yesterday but it kinda just sits there with a positive balance

coylemj

Ring them, ask them to manually accrue the invisible interest today, transfer money in or out (from or to one of your other accounts) to clear the balance and close the account. And ask them to post you a final statement showing a zero balance.

veryangryman

Got a small refund automatically so it's now a zero balance. Id imagine theyll post something out. If i don't get anything soon ill call into a branch.

Mimon

Must be a nice feeling. How does it work with the deeds? Do they drop them over to you?

veryangryman

Mimon wrote: »

Must be a nice feeling. How does it work with the deeds? Do they drop them over to you?

No idea yet but i do know the account is now closed. They usually mail me when i lodge "out of period" amounts so let's see what the mailman brings next week.

Yep a nice feeling. No debt. One less thing to worry about

The automatic refund is odd - I thought closure of a mortgage account always required consulting with the bank to get a redemption statement? Usually the redemption statement adds any odd interest that hasn't posted yet, redemption fees if you're on a fixed term, and release fees for the deeds/admin.

I know in my own case, when we finally pay it all off there's an additional €60 release fee, which I thought would only be applied after requesting our redemption statement. I've always done all my business through AIB so maybe it's just the difference in banks.

I'd say for the sake of putting it all to bed it might be worth contacting your bank to confirm.

veryangryman

Received a letter to acknowledge that the loan is paid but no further details. May call into them

I had to physically go to the bank (AIB) to do this. Crazy during Covid :-(

coylemj

veryangryman wrote: »

Received a letter to acknowledge that the loan is paid but no further details. May call into them

You'll call into a branch - for what purpose?

If it's to enquire as to what happens to the deeds of your house, be careful in asking for them to be released to you because you'll then have to figure out where to store them.

The J Stands for Jay

Mimon wrote: »

Must be a nice feeling. How does it work with the deeds? Do they drop them over to you?

Probably best to leave them with the bank. Otherwise you'll be paying a solicitor to look after them.

veryangryman

coylemj wrote: »

You'll call into a branch - for what purpose?

If it's to enquire as to what happens to the deeds of your house, be careful in asking for them to be released to you because you'll then have to figure out where to store them.

Agree that the calling in should not be necessary. Wouldn't you think that in this highly regulated financial world, they'd have to inform you in writing "what happens next", options etc.

coylemj

veryangryman wrote: »

Agree that the calling in should not be necessary. Wouldn't you think that in this highly regulated financial world, they'd have to inform you in writing "what happens next", options etc.

Not necessarily. When you took out the mortgage, you may find that you agreed that your house could be used as security for that loan and all future loans you took out from that lender. So the default may be that they simply hang on to the deeds of your house.

And if they don't charge you for storing them, the only reason to ask for them back is because you're selling up or you want to take out a secured loan with another lender. Until you decide to do either, I'd let your current bank hang on to the deeds. The alternative is that you end up with a file of legal documents and you'll have to find a safe home for them. For which someone will probably charge you an annual fee.