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This article does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Q: Do I only own my house when I pay all the mortgage off?
Answer: Technically, you own your home the minute you sign closing documents and the deed is transferred to your name. Your mortgage provider is merely a lien holder so once you pay off your mortgage, the bank’s lien is fulfilled and released.
First order of business once your mortgage is paid off is to get your provider’s interest against your property’s title officially discharged. This step is crucial if you decide at a later date to sell, as your solicitor will need to confirm that your lender has released their interest. If you don’t do this immediately, your account may have been closed, making it difficult to locate the documentation that proves your loan is paid off.
The next step is to transfer insurance, if it was included in your mortgage premium, into your name so you can continue those payments. It’s also important from a practical standpoint. In case there was ever an incident or need to make a claim, such as a fire, if your mortgage lender was still listed on your policy, you would have to work through them, delaying your reimbursement cheque. You will also still need to pay council tax on time to avoid reminders, summons, or even legal action.
Paying off your mortgage is a major accomplishment and deserves to be celebrated. It certainly frees up additional funds allowing you to to save or invest in your future.
But, in order to make the most of your hard-earned windfall, you should seek expert advice from the financial advisors at Dental and Medical Financial Services. Contact us today to discuss the best investments for you.