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

[Ethel]

If the land is registered at the Land Registry, then you can keep the deeds at home. Many people already have the paper deeds even when the mortgage is still running. It is only an issue if the land is not registered.

Removing the charge is very straightforward and shouldn't cost them a lot to do.

Read this useful article about fees:

http://www.moneysavingexpert.com/reclaim/mortg age-fees

[Bazile]

Thanks