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Finance

Paying Off Your Mortgage: Why Do It and How It Works

Just as you had to complete various procedures to establish your mortgage, such as signing the purchase agreement before a notary or having the property appraised , there are additional steps to paying off your mortgage that involve further costs. At UCI, we don't like fine print, so we'll explain everything in detail, one-on-one. Keep reading to find out what they are!
Updated: 09 JUN 2026
PUBLICATION DATE: 15 NOV 2022

Summary

What is mortgage release?

Executing the mortgage release is merely a formality to inform and prove to the relevant authorities and society in general that the property is now yours and the loan has been fully paid off.

Why should I carry out a mortgage release?

It's true that paying off the mortgage isn't mandatory and will involve an additional cost that varies depending on the original loan amount. However, it is advisable to do so after paying off the loan.

The reason is that this process involves registering the cancellation of the mortgage encumbrances on the property with the Land Registry after the mortgage has been paid off. Therefore, if you wish to sell the property or take out a second mortgage in the future, for example, the registry information will reflect the property's current status.

Otherwise, the official records will remain linked to the property for 20 years, even if the mortgage has been paid off, hindering any real estate transaction. After those two decades, the Land Registry will update the information, automatically removing the encumbrances.

Time to Pay Off Your Mortgage: Where Do I Start?

Since it is not a mandatory procedure, you have two options to carry out the mortgage release:

  • Mortgage cancellation through the financial institution with which you signed the mortgage. This is a simpler procedure, as the relevant bank or savings bank will handle all the steps, after you submit the cancellation request.
  • Paying off your mortgage yourself . In this case, you will be responsible for fulfilling all the requirements and submitting the necessary documentation. Specifically, this is what you will need to do:
  1. Request a certificate of zero outstanding balance from the financial institution that held your mortgage. Although it should be free, many banks may charge a fee for this service.
  2. Take this document to a notary and request the preparation of a cancellation deed , signed by you and the financial institution's representative. The cost will vary depending on the notary chosen and the mortgage amount.
  3. Complete and submit the Stamp Duty form to the Tax Agency . Although it must be submitted, it will not incur any costs as it is exempt from payment.
  4. Go to the Property Registry with the deed and the receipt for the Tax on Documented Legal Acts and submit the form for lifting the charge there, which will cost from 25 euros upwards.
To verify that everything is correct, it is best to request a simple property report to ensure that the property is indeed free of encumbrances.
 

The UCI blog posts cover current issues that are intended to be useful to our readers. However, it is possible that some of the less recent posts contain out-of-date information, so it is necessary that you always check the publication date of the post.

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