Outstanding balance for re-mortgage

pledgeX

My 5 year fixed deal is due to end on the 30th June. Therefore I’m looking to re-mortgage on the 1st July with another lender.

I’ve been in contact with my current lender (Nationwide) to ask them what my outstanding balance will be on the 1st July, and thus what balance I should give the new lender. They responded with a figure which they stated was ‘approximate’. I then responded asking why this is an approximate value and wasn’t exact. They responded again with another figure but they again said it was an approximate and an accurate balance will be available nearer the time.

Two questions:
1) Why can’t they give me an accurate figure?
2) We’re only talking a few pounds here, but I’m concerned what will happen if the value I give my new lender is different from my outstanding balance. What will happen in this scenario?

Thrugelmir

pledgeX wrote: »

1) Why can’t they give me an accurate figure?

Because it's in the future.

Transfer of mortgages is not a precise science. The actual remortgage may not take place on exactly the 1st July. As was the case when you bought the property. You'll need to ensure that there are sufficient funds for the solicitor to complete the transaction. Including possibly their fees and disbursements. Any excess funds will be returned to you.

kingstreet

Over estimate a little, then the solicitor handling it will pay it on to you and you can pay it back to your mortgage.

Job done.

BTW a lender can't forward date a redemption figure in case you don't pay the mortgage for the next three months!

Meatballs

kingstreet wrote: »

Over estimate a little, then the solicitor handling it will pay it on to you and you can pay it back to your mortgage.

Job done.

The solicitor, chosen by the new mortgage provider in my case, will then charge you a £36 fee for 'excess funds transfer', and then another £36 fee for 'next day transfer'. :mad:

I at least got the 'next day transfer' down to nothing as they said they can send a cheque for free.

TBH I was under the impression the loan amount would be adjusted when the solictor received the redemption amount. Fortunatly saving rates are higher than my remortgage amount so I can earn interest on it

Thrugelmir

Meatballs wrote: »

The solicitor, chosen by the new mortgage provider in my case, will then charge you a £36 fee for 'excess funds transfer', and then another £36 fee for 'next day transfer'. :mad:

Time cost plus recharge of the banks fee. No profit.

kingstreet

Meatballs wrote: »

The solicitor, chosen by the new mortgage provider in my case, will then charge you a £36 fee for 'excess funds transfer', and then another £36 fee for 'next day transfer'. :mad:

I at least got the 'next day transfer' down to nothing as they said they can send a cheque for free.

TBH I was under the impression the loan amount would be adjusted when the solictor received the redemption amount. Fortunatly saving rates are higher than my remortgage amount so I can earn interest on it

There's nothing to stop you requesting a revised offer from your lender when the redemption statement has been obtained. It can't be done by anyone but you.

Dan83

Why does a solicitor need to be involved in a remortgage to a different lender?

When you remortgage, does the new lender require a valuation, surveyors report and other stuff required when you bought the house in the 1st place?

Sorry for hijacking your thread but I'm thinking of moving myself.

csgohan4

Dan83 wrote: »

Why does a solicitor need to be involved in a remortgage to a different lender?

When you remortgage, does the new lender require a valuation, surveyors report and other stuff required when you bought the house in the 1st place?

Sorry for hijacking your thread but I'm thinking of moving myself.

Please make a new thread as hijacking is frowned upon and also it makes it difficult for new users searching for relevant Threads


Have a look at the remortgaging guide from MSE before posting: http://www.moneysavingexpert.com/mortgages/remortgage-guide

http://www.moneysavingexpert.com/mortgages/remortgage-fees

You have to do some work yourself as well

pledgeX

Thrugelmir wrote: »

Transfer of mortgages is not a precise science. The actual remortgage may not take place on exactly the 1st July. As was the case when you bought the property. You'll need to ensure that there are sufficient funds for the solicitor to complete the transaction. Including possibly their fees and disbursements. Any excess funds will be returned to you.

Why is not a precise science though? With 3 months notice why can't it be scheduled for a particular day? I understand it's trickier when buying a house and there are multiple buyers/sellers involved, but for a remortgage I don't understand how it can be so complicated.

kingstreet wrote: »

BTW a lender can't forward date a redemption figure in case you don't pay the mortgage for the next three months!

I understand that they can't actually give me a proper redemption figure, but I can't see why they can't say IF you make all your payments on time your redemption figure WOULD be.

RhysHSCC

Mortgages aren't an easy thing to calculate, I don't imagine they have some facility to just put the numbers in, they would have to do it themselves manually, which unless you are mathematically inclined they would not be able to do.

If you put your current balance from the 1st March,interest rate and current payment below, I'll work it out to the penny. It needs to be 1st March because if it's a daily calculated mortgage, I would be adding interest on top of interest already added for the month.

pledgeX

RhysHSCC wrote: »

Mortgages aren't an easy thing to calculate, I don't imagine they have some facility to just put the numbers in, they would have to do it themselves manually, which unless you are mathematically inclined they would not be able to do.

If you put your current balance from the 1st March,interest rate and current payment below, I'll work it out to the penny. It needs to be 1st March because if it's a daily calculated mortgage, I would be adding interest on top of interest already added for the month.

Thanks for the offer Rhyss. Very kind of you. I'm afraid I don't have the March 1st figure to hand as Nationwide's websites only give me the current outstanding balance.

I understand that it's quite a complex thing to calculate, but surely this is not an uncommon request, so you'd think they'd build a spreadsheet/application that can work it out.