Mortgage

[Bazile]

My bank has written to me advising that my mortgage account is in credit ( Mortgage payments finished ) and that there is a mortgage redemption fee to be taken from the surplus .

They advised me that I have two options for completely closing the account

A . Ask them to act for me in legally removing it's charge on my property
B . I can ask my own solicitors to close the account

My questions are :�

1. Which option should I proceed with � does it make any difference ?

2 Are they entitled to charge a redemption fee ? � I seem to recall something recently about lenders illegally charging redemption fees

3. How do I go about leaving the deeds with them for safe keeping � I seem to recall that you could do this by paying an amount less than the final instalment � so that you still owed them a small amount � is this correct ?
However given that my account is in surplus , how would I get around this ?

4. If number 3 above is achievable � do I take it that A & B above , wouldn't now come into the equation ?

Thanks

[Oneeyedvic]

1. Choose option(A) as option (b) will cost you extra (Solicitors charge for their time)

2. Tehy can charge you a fee - but it should be a sensible price - some times they will try charging you around �500. The cost should be around �200 (depending on what you set up when they arranged the mortgage)

3. The deeds are now pretty much irrelevant. Land Registry is now all computerised and therefore the printed deeds are only classed as a copy of the original which is on file at Land Reg. You may elect to keep them for posterity reasons, but I wouldn't bother storing them for a cost.

[Bazile]

Thanks