How to work out redemption figure in the future

20vt-rs

I'm in the process of applying for a re-mortgage and called my current lender to see what the redemption figure would be at the end of my fix, based on the assumption that I meet all payments and do not over pay at all. This is in 3 months time and they were unable to tell me and could only as of today.

So what is the bext way of working out how much I'd need to clear my current balance in 3 months time for the new lender? I have a rough idea as I have used one of the overpayment calculators to see what it'll be in 3 months time, however, the current lender told me just add the next 3 months payment amount together and take off my current balance, which doesnt sound right to me and is way off what the overpayment calculator states.

Any pointers appreciated, I'm trying to work this all out as I am borderline LTV and based on my valuation I may have to either find extra cash or drop to next LTV... Weighing up the options!

Cheers...

kingstreet

The redemption figure will change, based on when in the month you make your monthly payment, when in the month the lender charges the interest and when in the month your remortgage completes.

If the lender calculates interest and charges it to your account and you pay in advance on 1st, that should be the lowest balance of that particular month.

To be completely sure, use your current balance, plus a month's interest plus any discharge fee as the mortgage amount for which you'll apply.

Eg - current balance £100,000 and interest charged at 6%pa = £100,500. Add redemption charge say, £250 gives a total of £100,750.