�1 monthly mortgage repayment

[ericc]

I heard someone who is able to pay off the mortgage but she doesn't want to open a safety box in a bank just to keep the 'property deed', so what she has done is purposely not to pay off the mortgage and made �1 monthly mortgage repayment, in this case her mortgagee has to look after the property deed. How does it work? Does it apply to fixed rate mortgage or variable rate mortgage?

[sammy snake]

Deeds are largely irrelevant now, I have a 20 year mortgage and received the deeds from the Halifax shortly after my mortgage was set up.

I think that as long as your property is registered electronically with the Land Registry then the paper deeds don't matter.

This is only a recent think so historicallg Banks / Building Societies have charged people to keep their deeds in safe custody.

[sammy snake]

I meant that lenders don't usually charge people for safe keeping of their deeds as long as they have a mortgage outstanding so if someone keeps their mortgage low - like �1 owing - storage is free.

It doesn't make any difference these days as long as the property is registered.

[R1Geezer]

in most cases Deeds are irrelevant as sammy says. I Just keep them at home as a curiosity.

[ericc]

thanks for your advice, sammy snake and R1Geezer. I'm just wondering, if i want to make �1 monthly mortgage repayment and let my lendor to keep the paper deed on my behalf., how do I make it happen? Do i have to be on variable rate mortgage or fixed rate mortgage? Do I need to make a lump sum repayment and leave for example �500 outstanding so I could make �1 monthly mortgage repayment.

[Ethel]

It doesn't matter what sort of mortgage you have. However, many mortgage companies demand a final payment once your mortgage falls below a set amount, as it costs too much to administer.

I'm surprised your mortgage company still have your deeds - many don't hold on to them as they have been superseded by the Registered Title at the Land Registry.

If you have such a small mortgage the lender will not allow you to go on to a fixed rate at the end of the current agreement, and indeed may close the mortgage altogether, asking you for your final payment.

[R1Geezer]

As ethel says, the lenders are wise to all the "scams" to get them to look after deeds. They are of no worth so why pi55 around ,keep them at home in a frame or somthing if thats what floats your boat!