Surplus Funds from remortgage

madaminx

Hi all

My remortgage for £47.9k completed last week. The loan amount is based on my previous lenders statement dated 31 Dec 14 (exact amount £47912)

Taking into consideration that 6 repayments of £379.81 have been made prior to completion (amounting to £2278.86) resulting in surplus funds.

I receive a cheque from the solicitor for £1030.13. (£2278.86-£1030.13 = £1248.73) I was expecting a wee bit more as I know that fees need to be paid to solicitors and perhaps a commission as well to the broker (sorry not sure and sorry for being a bit naive lol) Or am I missing something pretty obvious?

Do I have a right to ask what the broker for a breakdown of the surplus funds?

Thanks for any advice given.

C

libf

Ask. No one else can tell you.

TrickyDicky101

Interest on the mortgage is not something you listed - what rate were you paying on the old mortgage? You could then estimate what the likely accrued interest from 31st Dec was.

getmore4less

You should have statement from the solicitor that shows the amount used to redeem the previous mortgage and detail all other charges.

Your payments cover capital and interest.
(need more details of the old mortgage to estimate the interest)

madaminx

Hi all

Thanks for your replies, appreciated.

I've gone through some paperwork and found these figures:

Surplus funds: £2278.86

Chq to me: £1030.13
Chaps fee: £30
Lending fee: £195
Lenders payment to broker £287.40

Remaining funds: £736.33

Regarding interest: mortgage payment of £379.81 is comprised of £227.79 to capital and the remainder is interest. The interest on those payments was 3.79%

Hope this helps.

Thanks

theoretica

madaminx wrote: »

Hi all

Thanks for your replies, appreciated.

I've gone through some paperwork and found these figures:

Surplus funds: £2278.86

Chq to me: £1030.13
Chaps fee: £30
Lending fee: £195
Lenders payment to broker £287.40

Remaining funds: £736.33

Regarding interest: mortgage payment of £379.81 is comprised of £227.79 to capital and the remainder is interest. The interest on those payments was 3.79%

Hope this helps.

Thanks

So your 'surplus fund' would not be £379.81 each month - but rather £227.79, the payment off capital. You can't reclaim the interest of the last few months.

£227.79 x 6 is pretty close to the break down you give. The small remaining difference will probably be because it was calculated to the day and wasn't exactly 6 months.

madaminx

Thanks Theoretica, that does help. However I am going to ask for a breakdown as there is still a bit of a difference.

:-)

kingstreet

Lender's payment to broker does not come out of what you have borrowed.

You need to know the redemption figure from your previous lender (capital balance, plus interest from last payment plus redemption/discharge fees).

You need to take the above away from the net mortgage advance given to your solicitor by your new lender and deduct any other charges which may have been made.

You need a copy of the redemption statement used by the solicitor obtained from your previous lender and a copy of the solicitor's completion statement accounting for the funds received and dispersed.

madaminx

Thanks Kingstreet, appreciated.