Payment made between redemption statement and completion statement?

UKSBD

Just about to complete on a remortgage.


We had a redemption statement a couple of weeks ago and completion statement today.


In between the 2 I had another mortgage payment go out.


As this amount paid wasn't on the redemption figure there is no allowance for it on the completion statement.


What happens with this payment, will it (or proportion of it) automatically be returned to me?

libf

Your conveyancer will return any surplus funds to do after everything has gone through.

UKSBD

Thank you, but they will be sending too much to my existing lender.
(as this months mortgage payment I made isn't accounted for)

Will this be automatically returned to them from my existing provider, which they will then return to me?

kingstreet

Any overpayment you have made to your existing lender will be refunded back to the account it came from by your existing lender.

Don't cancel the DDM just yet. It usually takes them a couple of weeks but it does come back.

UKSBD

Thanks,


I did assume that would happen, but wasn't sure if they would class my payment (made on 16th) as the overpayment, or the amount my conveyancer overpays them tomorrow.

scott_lithgows

Abbey took a payment out the same day I sold my first flat,my lawyer had to chase them for a month for them to return the cash.
When they did the cheque was already 4 weeks old,can't help but think they were chancing their luck.

UKSBD

scott_lithgows wrote: »

Abbey took a payment out the same day I sold my first flat,my lawyer had to chase them for a month for them to return the cash.
When they did the cheque was already 4 weeks old,can't help but think they were chancing their luck.

I haven't got a lawyer, it's just a remortgage and I am using my new lenders legal people - Lloyds Bank/Optima. (from one lender to another, Nationwide to Lloyds)


Would they be expected to chase it up on my behalf or would I have to do it?

scott_lithgows

UKSBD wrote: »

I haven't got a lawyer, it's just a remortgage and I am using my new lenders legal people - Lloyds Bank/Optima. (from one lender to another, Nationwide to Lloyds)


Would they be expected to chase it up on my behalf or would I have to do it?

They really should return the cash to your bank account (or a proportion of it)

To use my example,I sold the flat for 27k took off the 21k remaining on the mortgage plus lawyers fees of £500.

So I got 5.5k cheque back however the day of settlement was the mortgage payment date so I had to chase up the 200 quid taken out my account that day.

Phone Nationwide and ask them why you paid a months mortgage but only got X days for it.

Good luck

kingstreet

The redemption statement issued to the solicitor quotes an assumed final payment date.

Anything paid after that is refunded back to the account from which it is paid. This is nothing to do with the solicitor. If it is not back in the account within two weeks, contact the lender.

PaulC5

How would this work with an early repayment fee?
Do I need to make the overpayment well in advance of my solicitor requesting a settlement figure from my lender for my payment to count towards reducing the fee as it is a percentage of the remaining mortgage?

kingstreet

PaulC5 wrote: »

How would this work with an early repayment fee?
Do I need to make the overpayment well in advance of my solicitor requesting a settlement figure from my lender for my payment to count towards reducing the fee as it is a percentage of the remaining mortgage?

Yes..........