Mortgage "redemption figure expired" - why-ee?

m0rgana

So, I'm (still) going through the remortgage process. And once I did get all my docs together in one place (painful) I have to admit that I was really impressed with how quickly everything happened. We were approved a couple of days after sending it all in, which was great. That was, until now.

Our existing lender (Bank of Ireland) is pulling a trick that seems to be making it extremely difficult for our solicitors to make the transfer to the new lender, by leaving them a ridiculously short window to operate in. What they are doing is setting the redemption figure to expire a day after the solicitors request it - which means they cannot get everything in place quickly enough before the door snaps shut again.

I called the solicitors to ask why the delay and they explained this issue with the current lender. But they said it's not common - usually they make that figure valid for at least a number of days. Normally, they would only do this in the case of an offset mortgage (ours is not one of these) where the figure CAN change more frequently.

So what's going on here? Is this some kind of cynical attempt to keep people tied in for a few days or weeks longer just by making it really hard to actually complete? It seems VERY odd to me, and more than a little fishy.

And, basically, grr. This is maddening - going away on holiday in a couple of days and can't believe it's still dragging on. :mad:

whitewing

I have not used Bank of Ireland.

My redemption figure changed because I didn't sign the paperwork quickly enough but it was my fault and another old mortgage pymnt went though. I think there was a £25 charge for reissuing the figure. Are you being charged each time they reissue it?

Seems very odd to have such short timescales.

m0rgana

whitewing wrote: »

I have not used Bank of Ireland.

My redemption figure changed because I didn't sign the paperwork quickly enough but it was my fault and another old mortgage pymnt went though. I think there was a £25 charge for reissuing the figure. Are you being charged each time they reissue it?

Seems very odd to have such short timescales.

*nod* we weren't super speedy with the paperwork I'll admit, but when I looked at the figure they issued on the 'valid for a day' email, it looked accurate, and our last payment went out a good week before they generated the fiture.

I asked if we were being charged, and was told 'probably not' but I've a feeling there is a charge of around £20, as I seem to remember spotting this somewhere in the paperwork. Even more annoying if so.

_Andy_

"Is this some kind of cynical attempt to keep people tied in for a few days or weeks longer just by making it really hard to actually complete? "

No, it's not.

kingstreet

Bank Of Ireland is desperate to get rid of borrowers. I'm pretty sure the issue is nothing to do with keeping you hanging on. Every £1 repaid is about £6 less in capital it has to hold.

m0rgana

kingstreet wrote: »

Bank Of Ireland is desperate to get rid of borrowers. I'm pretty sure the issue is nothing to do with keeping you hanging on. Every £1 repaid is about £6 less in capital it has to hold.

Oh, absolutely. This will be why they are putting their rates UP while everyone else's are going down, and why they weren't remotely interested in offering us a rate below 4% when we called to ask for a deal to stay with them. Fortunately we are with Post Office not BOI directly, but it still concerned us to hear that piece of news.

Which all makes it even weirder and harder to understand why they are making it impossible for our solicitors to move forward with getting us out. It has happened again today, and they could not close the account, again.

Has nobody else here had this issue?

Thrugelmir

m0rgana wrote: »

*nod* we weren't super speedy with the paperwork I'll admit, but when I looked at the figure they issued on the 'valid for a day' email, it looked accurate, and our last payment went out a good week before they generated the fiture.

The settlement will only be valid for a day. As in another days time you will owe another days interest. Normally the settlement statement will include a note of the interest that will accrue on a daily basis. The solicitor when making settlement factors this into account.

dreamalittle

Just wondering if you managed to get this resolved? My fix with BoI runs out at the end of the year and I am hoping to move away from them swiftly and easily!

m0rgana

dreamalittle wrote: »

Just wondering if you managed to get this resolved? My fix with BoI runs out at the end of the year and I am hoping to move away from them swiftly and easily!

Yes...eventually. It took them about 3 more attempts, but they got there in the end. No real explanation for why it was done this way. Good luck with yours!