Remortgage redemption statement / payment

ed67812

Hi all.

I'm in the final throws of my re-mortgage to Nationwide. Tracking the progress of the application online shows that the legal firm have received the redemption statement from the current lender and I'm guessing that the case will update tomorrow saying that funds have been requested from Nationwide.

I've been told that the funds will take 3 working days to arrive. However, Monday is when our direct debit is due to go out.

How are redemption statements calculated? Will it have been produced on the estimated completion date next week and therefore have my usual payment factored in?

Thanks

Goldiegirl

It's based on the information known on the day the redemption statement is issued.

Therefore, they won't factor in the payment that is due, unless it has actually been received at the point the redemption statement is produced.

If it turns out that the redemption funds are overpaid, you'll get a refund of the overpayment. In other words the direct debit would be given back to you.

ed67812

Goldiegirl wrote: »

It's based on the information known on the day the redemption statement is issued.

So in cases of remortgages, there will normally be a shortfall as a few days interest will always accrue between statement date and funds paying off the original mortgage???
(Unless of course, as in my case, there is a payment taken in the interim).
How is this shortfall paid?

Thrugelmir

Solicitor will be advised of the daily interest that will accrue. Therefore will take this into account when making settlement.

ed67812

Makes sense. Thanks for the input.