A zero debt certificate is a document issued by the bank showing that we do not have any contracted debts with it.
We request this document when we finish paying off the mortgage. We need this document when we want to request the removal of the mortgage from the Land Registry.
How do we get a zero debt certificate?
Once we have paid our final mortgage repayment, we can go to the bank with which we had the mortgage to get this document. The financial institution is obliged to provide this document free of charge. The Banco de España dictates that banks are not allowed to charge for this.
What is a zero debt certificate for?
The zero debt certificate is the first step for requesting the removal of the mortgage from the Land Registry. We need it if we decide to carry out this procedure ourselves or if we decide to ask our financial institution to do it.
If we choose to ask the financial institution to do this, we need to give our prior consent. We need to provide this consent in writing and sign it.
Do I have to cancel the mortgage in the Land Registry?
Removing the mortgage is not compulsory, but it is useful. Removing the mortgage from the Land Registry could make other procedures easier in future.
For example, removing the mortgage is necessary if we want to sell the property or request another mortgage.