Customers

Redeeming your mortgage

Whether you’re paying off your mortgage early or considering leaving us for a new mortgage elsewhere, our team can help.

Paying off your mortgage

What you need to know if you are paying your mortgage off early and how to request a redemption statement.

1. Find out how much is left to pay

• It may be useful to check your outstanding mortgage balance before requesting a redemption statement, as the statement is only valid for 30 calendar days.
  
• Your outstanding mortgage balance helps you understand approximately how much you have left to pay on your mortgage but will not include any applicable early repayment charges or a mortgage exit fee.
  
• You can find out your outstanding mortgage balance by logging into your account. If you prefer to talk to us, please contact our customer service team to confirm the balance for you.
  
• You still need to request a redemption statement before you make your final payment. This will confirm the full amount required to settle the mortgage.

2. Understand the costs and fees

• To understand any redemption fees that apply to your account, please check your mortgage offer pack and redemption statement.
  
• The costs and fees that may apply:
  
  • Early repayment charges (ERC)
    
  • Administration fee, called a mortgage exit fee

3. How to request a final redemption statement

• A redemption statement is valid for 30 calendar days from the issue date. It will include all the information needed to make the final payment and settle the mortgage in full.
  
• If you plan to redeem the mortgage after the redemption statement expiry date, you need to request a new redemption statement.
  
• If you redeem your mortgage between 1 and 30 days after the redemption statement issue date, you need to add the account's daily interest rate (given in the statement) to the redemption amount. For example, if you redeem 11 days after the issue date, you need to add 11 days of daily interest.
  
• If you make the final payment by cheque you need to add the daily interest for 5 extra days, to allow for the cheque to clear.

4. Closing your mortgage account

• After we receive the full settlement amount, we will arrange for our Legal Charge on your property to be released, and then write to you or your solicitor if they are acting on your behalf to confirm your mortgage is redeemed.
  
• If you're moving out of the mortgaged property, please let us know your new address to make sure you receive any final correspondence from us.
  
• If your property is in Scotland or Northern Ireland, you need to appoint a solicitor to help manage the final part of the redemption on your behalf. Once the mortgage is repaid in full, your solicitor needs to prepare an application to arrange for the Standard Security or Legal Charge to be removed from official land records; referred to as discharging. Once this has been completed your solicitor will notify you that the Standard Security or Legal Charge has been discharged.
  
• For properties in Scotland, we can appoint a solicitor to manage this for you and our team will confirm the cost.

What is a Legal Charge or Standard Security?

A Legal Charge gives security to a lender for money you owe by registering a charge against your property. The charge (called a Standard Security in Scotland) is registered with Land Registry (properties in England, Wales and Northern Ireland) or Land Register of Scotland (properties in Scotland).