Redemption Statement Help! (Redstone Mortgages)

TTT123_2

Hi everyone!

I've called Redstone Mortgages and asked them to send me INFORMATION about my early repayment charges.

Instead of this I’ve recently received Redemption Statement from Redstone Mortgages.

After another phone call to them explaining that I requested only INFORMATION about my early repayment charges, not the Redemption Statement, I was told that I should not worry about this Redemption Statement, and this is just for information.

But I'm still confused, because the the Redemption Statement clearly indicated that I need to pay £321.000 before 20 of May 2009, otherwise they will charge an interest.

Please help !

Thank you !

Scaredy_Cat_3

It's standard procedure to just issue a computer generated redemption statement... it's easier than producing a personal letter detailing your prc. I would guess that the statement was calculated up to 20th May (I don't know why they chose this date, often they just use the date you requested the statement, or maybe the end of the week, something like that).

Anyway, it will be calculated on the assumption that you are going to pay off your mortgage on 20th May, and they are saying if you don't clear it on that date you will incur extra interest. This is all totally standard stuff with redemption statements, and nothing to worry about. If you want to post the exact wording of the bit you are worried about it may help, but it sounds to me like it's just an automated form.

I used to work in a mortgage centre (not Redstone, though), and if a customer requested this kind of info it's just the easiest way to send it out - it doesn't mean you HAVE to pay it off on 20th May, that's just a random date they have chosen in order to provide an illustration.

That said, a redemption statement probably doesn't give you the info you actually want about the early repayment charges. For example, it will tell you how much prc you will pay if you clear the mortgage on 20th May, but it won't tell you what date that prc expires if you don't pay off the mortgage on 20th May. If that's the info you need, you will probably have to contact them again and be more explicit.

TTT123_2

Hello !

Thank you for quick and useful reply!

Here is the text of the letter:

" Redemption Statement

Account Number: xxxxx
Customer Name: xxxx
Security address: XXXX

The amount required to fully repay this account as 20th May 2009 is £321,xxx.xx . If you are unable to repay your account on this date please ensure you add an extra amount to cover the additional daily rate of interest, which is £47,16 per day. Please read the following notes and the attached statement breakdown for more information.

If your current montly payments is by Direct Debit, we will automatically cancel this when your account redeems. "

and after that 3 pages of " How to make Payment", "Our Details", "Under and Overpayments", "Legal Documents", "REDEMPTION NOTES", "CUSTOMER NOTICE" and "Detailed Breackdown".


I'm worried about "additional daily rate of interest". Is it additional to my current montly payments? Seems to be a lot for just a missunderstanding of what I really requested from them :-)



Please advice


Cheers!

Scaredy_Cat_3

Yes, it's a perfectly standard redemption statement. As I said, they can be issued just for info - if you had rung up and asked how much you owe on the mortgage, for example. It doesn't mean you HAVE to pay the mortgage off.

What was it you wanted to know? Were you asking them for the amount of the penalty or the date it expires? If you just wanted the amount, then the redemption statement gives you that - but as I said it's just for info.


EDIT:

The additional daily interest is quoted because IF you really were intending to pay off your mortgage on 20th May, then IF you didn't manage to get the funds transferred to clear the mortgage until, say, 22nd May, then you need to know how much extra to add on for those extra couple of days.

So what they are saying is that your mortgage incurs £47.16 interest each and every day. Normally you pay this off each month with your monthly mortgage payment. It's not in addition to your monthly payment, it IS (part of) your monthly payment! Although if you are on a repayment mortgage you will be paying a bit extra to reduce the balance each month, too.

TTT123_2

Thank you very much Scaredy Cat !!! Now I feel better :j

Scaredy_Cat wrote: »

Yes, it's a perfectly standard redemption statement. As I said, they can be issued just for info - if you had rung up and asked how much you owe on the mortgage, for example. It doesn't mean you HAVE to pay the mortgage off.

What was it you wanted to know? Were you asking them for the amount of the penalty or the date it expires? If you just wanted the amount, then the redemption statement gives you that - but as I said it's just for info..

Yes , I wanted to know the amount of the penalty for early repayment and the date it expires. The amount of the penalty is in the redemption statement , but not the date it expires. I was told about this date when I rang them, but somehow it's not mentioned in the statement.

Scaredy_Cat wrote: »

EDIT:

The additional daily interest is quoted because IF you really were intending to pay off your mortgage on 20th May, then IF you didn't manage to get the funds transferred to clear the mortgage until, say, 22nd May, then you need to know how much extra to add on for those extra couple of days.

So what they are saying is that your mortgage incurs £47.16 interest each and every day. Normally you pay this off each month with your monthly mortgage payment. It's not in addition to your monthly payment, it IS (part of) your monthly payment! Although if you are on a repayment mortgage you will be paying a bit extra to reduce the balance each month, too.

Clear ! Thank you !!!

Scaredy_Cat_3

No, the expiry date of the penalty won't show up in a redemption statement. As I said before, they are computer generated and just intended to show the amount of money you need to pay to clear the mortgage on a given day.

If you need the expiry date of the penalty, it will be in your original mortgage terms, if you still have those. Alternatively you will have to contact Redstone again and ask them what the date is.

TTT123_2

Scaredy_Cat wrote: »

No, the expiry date of the penalty won't show up in a redemption statement. As I said before, they are computer generated and just intended to show the amount of money you need to pay to clear the mortgage on a given day.

If you need the expiry date of the penalty, it will be in your original mortgage terms, if you still have those. Alternatively you will have to contact Redstone again and ask them what the date is.

yep, the expiry date of the penalty is in my original mortgage terms, just found it !

thanks you again! :T very helpful and useful information !

cheers,

gerihop

hi there

i have had a nitemair with the early redemption charge which is huge on my letters it says that it will stay on there until 2032 yet it should change as stated on the paperwork in 2009 no-one at Redstone wants to take any charge as to the correct date

confused...