Last mortgage payment before sale?

averagemummy

Hi, I'm hoping that someone can clarify something for me:

Our house sale is going through at the momment, deposit hopefully being paid by the buyer this week. The mortgage payment is due next week.

Now we were hoping that the sale would have completed earlier in the month and we wouldn't have to pay this months mortgage. But it looks like completion will now be next month.

As our mortgage redemtion statments were up to the end of last month, my hubby reckons we should not pay this month as it will not be necessary and will be throwing money away.

However I'm sure I have read in a couple of places that we have to pay the mortgage right up to completion? But if that is the case, what happens about the redemtion as the statements are now (I think) incorrect?

Thanks

fannyanna

You need to pay your mortgage. Your solicitor will obtain an up-to-date redemption statement.

Also if you do make an overpayment your mortgage provider will return this to you. And cancel your mortgage direct debit upon completion as they'll probably take another payment automatically. That's what happened to me (but it's not a big deal as they return the money).

averagemummy

OK thank you, will make the mortage payment as usual.

kingstreet

Your solicitor gets a redemption statement which has a window of about a week. He tells them the target completion date and they tell him the figure, plus a daily rate for a few days later than that.

If it's into another month, he'll have to order a new statement and that will take into account any further payments you make.

averagemummy

Thank you - do I need to get onto the solictors then and ask them for a new redemtion statement?

fannyanna

If you do you have very poor solicitors :-)

kingstreet

The solicitor asks your lender for a new redemption statement in preparation for his next attempt at agreeing a completion date.

averagemummy

fannyanna wrote: »

If you do you have very poor solicitors :-)

I don't have any confidence in them at all! Took over a week and at least 4 phones calls between the bank and the solicitors to get the redemtion statement into the solicitors hands!

Each kept blaming the other for the delay. The solicitors also posted the intitial forms etc to the wrong house.....


I have their number on speeddial :cool:

fannyanna

They should be on the case but I suppose there is no harm in reminding them.

DVardysShadow

averagemummy wrote: »

As our mortgage redemtion statments were up to the end of last month, my hubby reckons we should not pay this month as it will not be necessary and will be throwing money away.

The rest has been covered. But your OH would make an incredible mistake not to pay, because it will rightly put a black mark on your credit record. The money will not be thrown away - it will all be put right with the correct redemption statement, Ask your solicitor for a copy and check it is for the correct week.