Redeeming your mortgage

You may want to pay off (i.e. redeem) your buy-to-let mortgage early, perhaps because you are looking to sell a particular property or are considering remortgaging to another lender to get a better deal. Alternatively you may have a lump sum available and want to pay off your mortgage to reduce your monthly outgoings.

In this section you will find information to make the process of redeeming your mortgage as smooth as possible.

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 below links 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
Durham
DH1 9JQ

If you have an interest only mortgage and are using a repayment vehicle such as an endowment or other investment, 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 of any repayment vehicle is insufficient to cover the amount you owe on your mortgage, then you are responsible for covering this 'shortfall' from other funds. This is also the case if you are selling your home and using the sale 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.

When you move your mortgage to another lender, please note that we are currently waiving all Early Repayment Charges (ERCs). Please contact us for more details.

If your property is worth less than the mortgage

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

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 buy-to-let 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. You should also ensure that you have a suitable investment vehicle in place and should check that this is on track to generate sufficient funds to repay your mortgage at the end of your term. You may need to consider increasing your payments if there is likely to be a shortfall.

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.

To discuss any of these options, please call us.