Paying off Mortgage, Procedure?

Hi there

I am in the happy position of being able to clear the outstanding Mortgage on our house.

I am getting a Illness Insurance payout, which will be more than enough.

However, I would not recommend this method to my worst enemy, but enough negatives.

My mortgage has 5 years left to run, originally 10-year term.

I have got a settlement figure from UB, which includes a "standard sealing fee" of €50, which is required by their legals to seal a vacate on the mortgage.

This seems pretty standard, however I am not sure what the best course of action after this is.

Do Mortgage Providers, like UB, have access to the Land Registry, to register the fact that my property is now unencumbered?

I think there is on-line access somewhere here, but I am not sure if an "ordinary punter" like me would have access, does anyone know?

What is the situation in getting hands on the Deeds, which are presumably held by UB?

I renewed Mortgage Protection Insurance in November, for the coming year. Will I be able to reclaim the portion which is not now required, as Mortgage will be paid off?

Finally, given my circumstances (outlined below), is clearing the Mortgage the best course of action?

I have €44k left to pay on mortgage, 5 more years, will be on a Pension from next month, approx €27k p/a retirement due to medical grounds.

I will get approx €50k lump sum immediately, and €80k lump sum in 4 years, normal retirement age (60).

OH (Mrs. Pancake) will have income €10k p/a.

Od course, the above presupposes I will survive, but I am planning to, prognosis is good, TG.

Thanks in advance to anyone who can give guidance or assistance in this.

Regards

IP

Can't answer the second part but usually you pay the sealing fee and then they send you the vacated mortgage. That then needs to be filed in teh property registration authority or the registry of deeds, depending on the title, for it to be taken off the title with the appropriate fee.

Or you could just hang on to the vacated mortgage safely and don't bother right now- there's no immediate need to do anything- and the next time you need to deal with the property, whether a sale or a transfer etc you could just produce it to your solicitor at that point.

If you haven't already made a will, you might think about making one now and at the same time ask your solicitor to take the mortgage off the title. These are relatively minor matters that your solicitor should attend to for a nominal fee.

Thanks Vanilla, most helpful

When you say:

Or you could just hang on to the vacated mortgage safely and don't bother right now- there's no immediate need to do anything- and the next time you need to deal with the property, whether a sale or a transfer etc you could just produce it to your solicitor at that point.

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Is the Vacated Mortgage actually the Deeds to the Property, or just a Statement from the Bank?

Thanks again.

It's the 'mortgage' document that was used to create the original charge on your property, only now it has a section filled in by the bank confirming that the entire amount has been repaid to them. This issues to you along with the 'title documents' if any. You can just hang on to them ( preferably in a fire proof safe in case there is anything difficult to replace there) or sometimes people lodge them in their solicitors office for safekeeping.

If you are on a tracker mortgage you should be paying less than 2%.

Deposit rates of up to 3.5 % for lump sums are available at the moment.

Even after dirt you are in profit.

The other thing to consider is the banks are not lending much at the moment. If there is any chance you will need cash in the future then I would not pay down the mortgage at present.

HighFlier said:

If you are on a tracker mortgage you should be paying less than 2%.

Deposit rates of up to 3.5 % for lump sums are available at the moment.

Even after dirt you are in profit.

The other thing to consider is the banks are not lending much at the moment. If there is any chance you will need cash in the future then I would not pay down the mortgage at present.

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Yes, it's a 1.95% UB tracker, but I feel in my bones there is an ECB increase coming soon. This is what I want to avoid, by clearing now.

I think the returns on an investment of, say, €45K, would only marginally outweigh the Mortgage Rate.

Also, I feel I would be reasonably well provided for in the event of needing substantial cash, because of this:

I have €44k left to pay on mortgage, 5 more years, will be on a Pension from next month, approx €27k p/a retirement due to medical grounds.

I will get approx €50k lump sum immediately, and €80k lump sum in 4 years, normal retirement age (60).

OH (Mrs. Pancake) will have income €10k p/a.

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So, while I appreciate the advise, I think even writing this has made up my mind to clear, have no debt, and live reasonably OK on the Pension Incomes we have, (Me and Mrs IP).

Thanks again

pancake, best of luck with the recovery, I hope it all turns out well for you and that you and Mrs IP live a happy, debt free life together.

Thanks Paddy, much appreciated.

you and Mrs IP live a happy, debt free life together.

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The first 30 years are the worst, it gets easier Together since '79.

You gotta have a positive outlook