Redemption statement 2 months old

TheYorkshireman

I'm transferring my mortgage to another provider at the end of a 2 year deal.

The current lender provided my solicitors with a redemption statement that excluded the last two direct debits, presumably because they can't guarantee I'll pay them. So the figure to redeem the mortgage is some £1500 more than we need to pay.

Our new mortgage won't cover that shortfall, so the solicitor has asked us to pay it up front. The solicitors will then request a second redemption statement nearer the date, but we have to pay an extra £11 for that, there's no guarantee that will include all direct debits, and the solicitors are still asking for the extra £1500 up front. We will then pay £25 for the privilege of them transferring it back again.

I understand that we'll get it back (most of it) eventually, but is there a better way that doesn't involve us dipping into savings to pay two months mortgage twice over, just to get it back again? i.e. should the current lender simply provide a figure conditional on direct debits being paid?

Thrugelmir

Why was a redemption statement requested so early?

TheYorkshireman

Thank you. Good question. They said they ask once to get a rough idea, then again later to get a more accurate one.

I read in several places that it could take 6 weeks to complete the process, so wanted to give them plenty of time. Seems like I've learned a lesson there.

Given that's what's happened, does anyone have any advice what to do about it? Or do I just need to do what they ask?

TheYorkshireman

But they are still asking me to pay on on the basis of the early approximate one.

TrickyDicky101

The solicitors aren't asking you to pay the money to the bank - they presumably mean to lodge the cash with them so it is available to settle the outstanding amount (once they have notification from the bank of the accurate figure). It's annoying but in the grand scheme if you have the cash it isn't going to cause you insurmountable problems is it?

TheYorkshireman

It is not insurmountable, but £1500 is quite a bit to cover when you weren't expecting it. I've never remortgaged before, and I'd not heard anyone warn me that I might have to essentially cover two mortgages for two months, so I hadn't budgeted for it. I guess I just want to make sure that I wasn't missing something. It seems I just roll with it. Thanks for the response.

Thrugelmir

If you have savings available. You could always overpay your mortgage now. Thereby reducing the final settlement figure. When the remortgaging transaction is completed the solicitor will then return any excess funds to you.

kingstreet

Tell them to order the redemption statement closer to completion and they will then see what's outstanding.

They can then see if the funds they will have on completion day will be sufficient.

You should not have to pay more just in case. It makes no sense at all.

TheYorkshireman

Thank you Thrugelmir. I think the problem is that my last two mortgage payments (and overpayments) are not on the first redemption statement, and despite the solicitors gaining a second, they are still asking for the money owed on the first. So the savings still need to be sent to cover that. Yes they will pay it back when they see the final settlement figure, but overpaying more now just means that's more money they'll pay me back.

Thank you kingstreet, they are going to order another redemption statement closer to completion, which I will have to pay a charge for, so will see the funds will be sufficient. But they I don't see why I'm being asked to pay it up front now if they know they're going to get a different figure next time. It makes no sense to be either - hence my query.

Thanks all for your thoughts.

kingstreet

I would tell them to stop being so soft, but perhaps I can get away with something like that where your average mortgage borrower perhaps wouldn't have the confidence.

Goldiegirl

I have to say the solicitor seems to be making a meal of it.

Most normal solicitors would request an amount owing, for information purposes, dated to the end of the current month, knowing that there wouldn't be much change in the balance. Then they'd order the redemption statement when the completion date is known.

I agree with Kingstreet, I'd tell the solicitor not to be so silly.