Redeeming your mortgage

You may want to pay off your mortgage early to sell your property or remortgage to a better deal elsewhere. Or you may have a lump sum available and want to simply pay off your mortgage sooner.

To redeem your mortgage
To pay off your mortgage early, contact us to request a redemption statement. This statement will tell you how much you currently owe on your mortgage, including any fees payable.

Please click on the links below for further information on the redemption process:

  Redemption notes for Bradford & Bingley customers

  Redemption notes for Mortgage Express customers

Cheques should be made payable to Bradford & Bingley and your mortgage account number should be written on the reverse. Then simply send it to:

Bradford & Bingley / Mortgage Express
PO Box 629

If you have an Interest Only mortgage and are using a repayment strategy such as an endowment or other investment to repay your loan, you need a current valuation to ensure that its expected value is enough to cover the amount you owe on your mortgage. If the value is less than the amount you owe on your mortgage, then you are responsible for covering this 'shortfall' from other funds. The same is true if you are selling your home and using the sales proceeds to pay off the mortgage.

Fees and other costs

You may have to pay a redemption fee, which covers the maintenance and general administration of your mortgage during its term. This fee is non-refundable and is added to the final amount that you owe us.

Please note that until further notice we are not charging Early Repayment Charges (ERCs). Please contact us for more details.

If your property is worth less than your mortgage balance

If you are in negative equity, you will still be legally responsible for the full amount of the mortgage that is outstanding. If so, contact us before you proceed with any sale, so that we can discuss how we will manage your shortfall.

If your mortgage account is currently 'suspended'

This means you are no longer making any monthly payments but have a balance outstanding. We still hold a charge over your home and interest is being charged on the remaining balance. Over several years this balance could grow as interest is added. You can find out if your mortgage is suspended by referring to your most recent mortgage statement.

If you pay off this balance, we will release the charge over your property and send you your title deeds and ensure that you are not accruing further interest.

Contact us to find out more information about paying off your suspended mortgage.

Paying off your mortgage in the future

You can make it easier to pay off your mortgage in the future by taking action now.

If you currently have an interest only mortgage, you may want to switch to a Repayment mortgage. This will allow you to start paying off the capital each month and reduce the amount that you owe when your mortgage term ends.

If you wish to reduce your mortgage balance in a more flexible way, you could start making regular overpayments to reduce your balance and overall interest payable.

You should also regularly check that any investment vehicle that you will rely upon to repay your mortgage is on track to generate sufficient funds to repay your mortgage at the end of your term. You may need to consider increasing your monthly payments if there is likely to be a shortfall.

To discuss any of these options, please call us.

If you are coming to the end of your mortgage term

As we are closed to new business, we can no longer offer any new deals or further lending to our customers.  As part of the terms and conditions of your mortgage, you are required to settle any outstanding balances on your mortgage account, or associated loans, at the end of the agreed term.

If you are approaching the end of your mortgage or loan term, there are a number of things you can expect from us.  To ensure you are fully prepared to pay any outstanding balance, we will write to you twelve months before the end of your term to remind you that your mortgage is coming to an end.  We will then write to you again six months before and finally one month before you reach the end of your mortgage term reminding you of the end of your mortgage term.

If you want to repay your mortgage before the end of its term, you can request a redemption statement from us at any time and this will confirm the exact amount to be repaid.  If you have not settled your outstanding balance two months after the end of your term, we will write to you with a demand for payment that includes a redemption statement detailing the full amount to be repaid.  Not repaying the outstanding balance by the end of your mortgage term could lead to the repossession of your home and may also affect your credit file.

To speak to us about your mortgage, please contact us.