A guide to discharging your mortgage security
Useful tips on what the next steps are when you have paid your mortgage in full.
Paying off your mortgage can bring a massive sense of achievement; this can also leave you wondering what the next steps are to establishing ownership of your home. In this blog, we will explain the process for discharging your mortgage and what to think about once you have done this.
When purchasing a property using a mortgage, the lender requires you to offer the property as security against the loan; this is in case you fail to make repayments which means the lender can get their money back by selling the property to settle the loan. The legal document that results from this is known as standard security. Once you have paid your mortgage in full, the standard security can be cleared from the land register, which is where the term ‘discharging your standard security’ comes from.
Once you have paid your mortgage in full, the lender will write to you and confirm that your mortgage is now settled in full and will instruct you to arrange a discharge of standard security. Once you have received this, you can then instruct a solicitor to arrange an application for the discharge, which will be sent to the lender for signing; once the lender sends this back to the solicitor, it will then be sent along with the relevant fee to the Registers of Scotland who will then confirm that the charge has been removed from your title, this can take a few weeks to be confirmed. At Middleton Ross, our experienced team of solicitors are on hand to guide you through the process of discharging your mortgage and will ensure this is done with ease.
Once your mortgage is paid in full, you may wish to review your estate planning, for example making a will or updating an existing will or arranging to have power of attorney set up. Our previous blog on estate planning can give you points to consider when planning your estate, or you can speak to one of the team to discuss your options.