Incorrect redemption statement?

confusedbymortgages

I have recently remortgaged and believe that the redemption statement given to the solicitors by my old lender was incorrect. The figure doesn't match the amount on my mortgage statement. The new mortgage has completed but I plan on contacting my old lenders to double check the amount on the statement. I just wanted to check whether I am missing something here? Other than the redemption fee do lenders add anything else onto the settlement figure that could explain the difference?


Also, the latest payment I made to my old lender wasn't taken into account in the statement so I am expecting this money back. The solicitors said the old lenders would simply repay the money when it cleared after 14 days but I also want to double check this with my old lenders as when it comes to banks nothing is ever that simple. Just wondering whether anyone had experience of this too?


Thanks for your help!

ACG

They would usually refund any overpayment to you.

Do you have your mortgage offer/kfi from when you took out the previous mortgage? Section 8 would mention any fees. You can also ask the lender for a breakdown of the charge(s) if you have not had one already.

kingstreet

Yes. Any payment not credited to the account as arriving too late should be refunded. Don't cancel your direct debit as it may come back that way.

The redemption statement would include the balance, any discharge fee and interest from the last monthly re-calculation, if charged in arrears.

If interest had been paid in advance at the beginning of the month, any "unused" interest would be deducted from the capital balance.

confusedbymortgages

Thanks for your responses. Feeling reassured about being refunded last payment, no I haven't cancelled my DD so hopefully will receive payment in next few days. Re redemption amount, breakdown gave amount owed at the beginning of the year, amount I have paid and the interest amount, along with the redemption fee. I guess it could be to do with the way the interest is calculated as the other fees seem correct. I think I will have to speak to them about this to be 100% sure, I just don't trust banks.

Thrugelmir

confusedbymortgages wrote: »

I think I will have to speak to them about this to be 100% sure, I just don't trust banks.

Redemption statement will be calculated as at a given date. Obviously this can move in line with subsequent events. Everything will come out in the wash.

ACG

Banks are heavily regulated. If they have made a mistake they have to put you in the position you were in had the mistake not happened..

So to not trust banks is probably due to media more than anything else.

Having worked for 2 banks (RBS & Coop) neither had an ulterior motive when refunding fees. Infact at one point I remember RBS stance was if they ask for a manager just refund any £10-20 fees as its not worth a manager sitting on the phone for 20 minutes arguing the toss... that did change but it was never a case of do not issue any refunds etc.