Redemption Statement

Danportsmouth

Hello,

Just some advice / thoughts.

We currently have a mortgage with Natwest which we re-newed in July 2010 to last until July 2012.

We since have found a lovely house and decided to sell up and buy it.

We have been sent the redemption statement by Natwest via the solicitor, this is £3,464, ok its a bit harsh but we were prepared for it.

HOWEVER.. also on the statement is NET INTEREST TO ANTICIPATED REDEMPTION DATE £3,493 !!

I have have dug out all the paperwork for the mortgage, this incuded the key facts stuff and their agreement we signed, it does not say anywhere about the interest when redeeming the mortgage?

It says:

***************

What happens if you do not want this mortgage anymore?

Early repayment charges

If you repay all or any part of your mortgage on or before the end of the fixed rate term, you will have to pay an Early Repayment Charge on the amount repaid. Unless permitted under the terms of any incentive set out in Section 12 of this illusistration, if you want to change to a different product, the Early Repayment Charge will also become payable
Outstanding Balance - £118,449.16
The maximum charge you could pay is £3,549.69

**************

I've read everything we've been given and signed and cannot find anywhere about paying the NET INTEREST TO ANTICIPATED REDEMPTION DATE.

Has anyone come across this before, what are your thoughts?

Thanks,

Dan

kingstreet

Can't you get a new NatWest mortgage and port over the existing rate until it ends in July next year?

The early redemption penalty is probably classed as interest, then on top you'll pay interest from the point of your next payment until completion day.

eg - £3,464 ERP interest, plus the normal payment you make on 1/5/11, plus interest to completion day 3/5/11 of £29.

I think you'll pay your monthly payment as I think NatWest collect in arrears. It might be worth checking.

Danportsmouth

kingstreet wrote: »

Can't you get a new NatWest mortgage and port over the existing rate until it ends in July next year?

The early redemption penalty is probably classed as interest, then on top you'll pay interest from the point of your next payment until completion day.

eg - £3,464 ERP interest, plus the normal payment you make on 1/5/11, plus interest to completion day 3/5/11 of £29.

I think you'll pay your monthly payment as I think NatWest collect in arrears. It might be worth checking.

Natwest won't give us a mortgage on a newbuild which is a pain otherwise we would have done.

I still don't understand the interest payment being so high.

kingstreet

I see, that's a shame.

I think you're misunderstanding.

You're paying £3,493 in total, not £3,493 plus £3,464. Ask your solicitor to confirm as I guess it's him/her who ordered the statement.

Danportsmouth

kingstreet wrote: »

I see, that's a shame.

I think you're misunderstanding.

You're paying £3,493 in total, not £3,493 plus £3,464. Ask your solicitor to confirm as I guess it's him/her who ordered the statement.

Your completely right, I've re-read the statement etc and sorted things in my head...

Thanks its really appricated! :j