Remortgage redeption question

Phil3822

Hi all,

I am re-mortgaging presently and have been sent a settlement figure from my existing lender. It has the following information:
Redemption amount on 30th March = £78628.60
Daily rate of interest = £13.82

This is my first time re mortgaging and I do not understand what the daily rate of interest is or means or how I work out what I might have to pay.

I am looking to remortgage on or after the 7th of April due to the notice period I have to give my existing lender.

Any help you can offer would be great.

Phil3822

I should also add to this there is another section which says Interest Accrued = £399.87. Again, I am not sure what this means!

betmunch

the daily rate is what you pay for each day after the 30th march it takes before you complete. Your solicitor should give you the exact figure when he does the actual change of lenders for you

Phil3822

Many thanks, lets say I pay my motgage payment on the 1st of April and then remortgage on the 7th I assume they would minus the capital from the 78628 and then add 7 days interest at 13.82 per day. Hope that makes sense.

betmunch

Almost, the figures are calculated from the 30th of march though so it goes from that date, but your on the right lines. like I said the solicitor handling it will make sure you pay the right amount

Phil3822

Thanks, the main reason I am interested is that there is going to be a shortfall and I am trying to work out what that might be. I need to see if I can get new lender to increase offer by about a £1k or I will pay it myself. Broker is looking into this for me now but thought I would try to learn more about the situation. Thanks again.

betmunch

Shortfall of a grand? How did that come about?

Phil3822

My mistake, I looked at my credit file and saw the outstanding mortgage amount which I thought was right. I asked broker to arrange mortgage based upon that figure however got my settlement figure through and it turned out the credit file figure was wrong. I should have checked and feel stupid but there we are.

betmunch

Fair Enough, and the existing lender wont go a little higher?

Phil3822

I wish to move lenders as my current interest rate is 10.19% due to previous bad credit. Thats all clear now so hence I want a new mainstream lender. My broker is trying to get the new lender (Woolwich) to go the £1K higher.

LTV is ok for the selected deal, affordability is well in so hoping it should not be a problem. Any thoughts?

betmunch

Sorry, I thought the broker was looking for a new lender that would go 1k higher than the lender that you currently had lined up for the remo.

Was going to have to say your pretty unlucky if your right on the cusp that you cant get another grand out of them!