Mortgage lump sum payment without solicitor or payslips etc

[Taozzz]

Current mortgage deal with end in 6 month. I'm planning on getting a new deal with the same provider, so it should be fairly straight forward without having to have solicitor / conveyancer involvement.

But I'm also thinking about paying some lump sum in before the next deal. Now the question is what's the maximum you can pay in without having to go through 'anti money laundry' check or other similar procedure that involves gathering payslips, employment contracts etc? £5k, 10k, 20k? Having been through it once when repaying 'help to buy' a few years back, can't be bothered to do it again.

[AB]

I paid the mortgage off on my first house by arranging a bank transfer having spoken to the mortgage company, was about £150,000 - this was 2021 - no solicitor involvement required.

[Harpoon]

I've just moved mortgage deals with Leeds Building Society as one fix was expiring and I moved onto a new one to see out the mortgage. Arranged via Sarnie and I had nothing more than two or three letters in the post from LBS.

[Chris Type R]

I paid off a part (was two parts) of my NatWest mortgage last Nov. using a company loan of £100k without any issues/questions. This was all done online - I might have had to split up the payments into 2 due to payment limits.

[GT03ROB]

I paid off mortgage last year, no questions or checks, They saw 250k go into my current account, then transferred 225k out to repay.

Mortgage & current account were with same bank if that makes any difference.

[skyebear]

Your mortgage provider won't care unless you turn up in a branch with a bin bag full of fivers. TBH some won't even care then.

https://www.theguardian.com/business/2021/dec/13/n...

The only limit you may encounter is a max overpayment of e.g
10% of balance.

[JoshSm]

Mostly depends where the money is coming from. Lump from your bank account to the provider will be fine.

Issue is usually if you need to get the money into your account in the first place from somewhere external and then 'it depends'.

Also subject to whatever transaction/transfer limits your accounts might have depending on the account type and the source/destination.

[Malcolm E Boo]

I paid off my mortgage last year somewhere around £32K.

Transferred in to my current account from a savings account. Phoned the bank to tell them what I was doing. Made the transfer and two days later an email arrived from my mortgage provider thaking me for the business and that my account was closed.

Very easy.

I suspect if you talk to the bank the money is coming out of to tell them what is happening then it should be all good.

[KobayashiMaru86]

I'm thinking of doing similar. Stick 15k in as the deal is ending to drop it to 115k left and still gives a sensible monthly. My mortgage adviser said it would be fine.

[OIC]

skyebear said:

Your mortgage provider won't care unless you turn up in a branch with a bin bag full of fivers. TBH some won't even care then.

https://www.theguardian.com/business/2021/dec/13/n...

The only limit you may encounter is a max overpayment of e.g
10% of balance.

Fined £4.3 million in costs.

What's that per hour for the Gubberment legal team?

Presumably a few forensic auditers got a new Merc out of that case as well.

5 mins work max - how many bin bags full of cash, when and by which fine upstanding citizen of Bradford?

Jeez.

[POIDH]

JoshSm said:

Mostly depends where the money is coming from. Lump from your bank account to the provider will be fine.

As someone who walked across a city centre between two solicitors with a bag containing £82k to buy my first house, I can say that this was not a problem.. (This was in 1999)

[Taozzz]

Thanks all, sounds like an easy process, as I'm only looking at paying in £20 - 30k.

[Your Dad]

Crazy suggestion, but you could always contact your mortgage provider and ask them.

[Sarnie]

Taozzz said:

Having been through it once when repaying 'help to buy' a few years back, can't be bothered to do it again.

You haven't been through it once though. What you are referring to above, is repaying a HTB Equity loan, which does require solicitors to remove the charge and you would have to go through an AML process.

Reducing your mortgage balance is simple, you can do it online with little or no contact with the lender. Just ensure you don't exceed your annual allowance.

[ThingsBehindTheSun]

Sarnie said:

Reducing your mortgage balance is simple, you can do it online with little or no contact with the lender. Just ensure you don't exceed your annual allowance.

This, I am currently overpaying 10% a year, the most I can do with my current mortgage. The first two times I did this I did it over the phone as one lump sum, all I was asked was "Where is the money coming from" and I replied "savings" and that was it.

I am now just doing it online monthly, doing this as a money transfer via my banking app I can see the balance reduces the next day.

[zsdom]

Speak to your provider, they usually give a small window so that you can overpay whilst you’re in between your old deal ending & the new one starting

I think for normal overpayments it’s usually 10% of the balance on the start date of the mortgage eg 10% of the balance on 15th January each year thats without ingurring any ERC

[Gary29]

ThingsBehindTheSun said:

This, I am currently overpaying 10% a year, the most I can do with my current mortgage. The first two times I did this I did it over the phone as one lump sum, all I was asked was "Where is the money coming from" and I replied "savings" and that was it.

I am now just doing it online monthly, doing this as a money transfer via my banking app I can see the balance reduces the next day.

I do the same, and have done for a long time now.

Usually when your fixed deal ends you'll get put on the bank's default rate and you can overpay without additional charge, and then chose a fixed rate a few days / weeks later, I think that's what I did with my last mortgage.

[ThingsBehindTheSun]

zsdom said:

I think for normal overpayments it s usually 10% of the balance on the start date of the mortgage eg 10% of the balance on 15th January each year thats without ingurring any ERC

I thought the same, but I have just had an annual statement through listing my overpayments and it appears the year is the financial year. Be interested to know if this is the case.

[98elise]

Like others I've paid off about 80k as a simple no questions electronic transfer.

The money actually went missing between the banks for a couple of weeks, but that's a different issue!

[ThingsBehindTheSun]

98elise said:

Like others I've paid off about 80k as a simple no questions electronic transfer.

The money actually went missing between the banks for a couple of weeks, but that's a different issue!

I know this is Pistonheads and as a powerfully built company director you didn't give it a second thought, but I would have had sleepless nights until it turned up.