When you first get a mortgage, wondering what happens when you pay off your mortgage seems to be so far in the future. That day may come round quicker than you think and here’s some advice about what you need to do.
Once you pay off your mortgage, you will receive documents from your lender to show that your loan has been paid in full. These documents are often called a mortgage release or mortgage satisfaction.
Once your mortgage has been paid off, you can:
- continue to live in the property and enjoy your reduced outgoings,
- sell the house and make use of the money made from the sale,
- remortgage the property with a residential mortgage to access money,
- re-mortgage to a buy-to-let agreement and rent out the property for income.
What happens if you pay off your mortgage early?
Paying off your mortgage early can be a huge relief however some mortgage providers charge early exit fees or early repayment charges. This usually happens so they can make back some of the money they will lose in interest if the loan is repaid early.
Make sure you check your mortgage terms and conditions before you repay your mortgage early. If you would like us to calculate how much it will cost you to repay your mortgage early then please get in touch.
*Your home may be repossessed if you do not keep up repayment on your mortgage.