What happens when your mortgage ends?

So you’re nearing the end of paying off your mortgage — congratulations! You might be starting to question what exactly comes next in this process, whether it’s simply a time of celebration or you have more options to consider. Here is a guide of everything you need to know when you pay off a mortgage.

The end of repayment

The completion of your mortgage term signifies the complete repayment of your loan and interest, without any outstanding fees arising from missed payments. Once it is paid off, the lender removes their right to secure a debt against your home (the charge), and you receive the Title Deeds to your property, which are paper documents showing the property’s chain of ownership.

Interest only mortgage

Interest only mortgages are where you only repay the interest on a loan over the loan period and paying off the capital of the loan is deferred to the end of the term. At the end of the term, you have options of how you pay it back, through savings, investments, selling the property, or remortgaging. 

The final payment

There may be some fees with your final mortgage payment to release the final paperwork. If they haven’t already provided it, ask the lender for your mortgage redemption details or quote before making the final payment. The quote will show how much interest and principal is left to pay before you own your property fully. These fees could include the account fee if you deferred to the end of the term or an exit fee. 

Ending a mortgage early

You may wish to pay off your mortgage earlier than the agreed period of the term. Check the terms and conditions of your mortgage agreement for any early exit fees or early repayment charges that may apply. These penalty costs may outweigh the benefits of clearing the loan early. Speak to a broker about your options and ensure you’re making the best decision for your financial circumstances.


You are able to remortgage your property once you have paid off your existing mortgage. This is referred to as mortgaging an unencumbered property. This puts you in an attractive position to lenders, as the previous lender has removed any charge against the property and opens you up to better deals with more competitive rates and terms.

Don’t forget

Make sure you contact your insurance company to inform them you have cleared your mortgage and no longer owe the lender money to have the lender removed from your policies. Cancel any standing orders or monthly payments to ensure you don’t make any unnecessary payments. Consider your tax obligations and ensure you have homeowner insurance to make sure you and your home are completely protected.  

The end of your mortgage term is an exciting and rewarding time in your life but take time away from your celebrations to ensure you’re completely protected and are making the right decisions for your financial future. 

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