Mortgage Redemption Figure > Balance

Yalden

Hi All,

Having come to the end of a 2yr Fix I'm currently remortgaging from Santander to Nationwide and have just received a redemption figure of £120,983 from the solicitors.

I began the remortgage process a couple of months ago working off an August mortgage balance of £120,758. Since this time I have made two monthly mortgage payments and my current balance is showing as £120,359, with next payment due on 1st Nov.

I expected the redemption to reflect my current balance, plus the original mortgage account fee of £225 which I deferred when taking out the mortgage with Santander. However as you can see, perhaps by sheer coincidence, the redemption reflects the amount I've applied to borrow, plus £225 (£120,758 + £225 = £120,983).

So whilst I expected to be credited £174 I'm actually being charged £225, which makes me £399 worse off. Also, my remortgage balance will be £120,758, £399 greater than my current balance.

I'm looking for advice on the matter as I'm being asked to make payment before Friday to ensure completion goes as planned but I'm reluctant to pay out a sum of money without first agreeing to my redemption figure.

Thank you for bearing with me, hopefully the above is clear.

Many thanks, Chris

ACG

Interest is normally charged daily, so your balance will be more tomorrow than it is today and so on until the date you make your payment then it will come down but then start to raise daily until you make your next payment again.

Added to that you will have a deeds release fee of around £100.

Thrugelmir

Yalden wrote: »

my current balance is showing as £120,359, with next payment due on 1st Nov.

When was interest last charged to your mortgage account? Was it to the 30th September. Your completion statement will also include the interest that's to be charged from the 1st to 28th October inclusive.

Yalden

Thank you guys I think this is starting to make sense. My current balance is from 1st October so I'm still due to pay interest up to my completion date of 28th October, plus the £225 deferred fee.

Whilst we're on a role, my Nationwide offer assumes my mortgage will start on 1st November with an initial payment of £681.44, followed by 23 payments of £490.20. The initial payment includes "interest charged in the month of advance and the first month's payment", unfortunately I'm struggling to understand what this means, help!

ACG

If your first payment is due on the 1st November but you dont complete until the first of november, then its too late for your DD to take, so your first payment will be 1 months full payment plus the interest between when you completed and when your first payment goes through...but double check that with the lender as they are all different and I do not use Nationwide very often.

Yalden

That was my assumption but +£190 seems high for four days interest (completion on 28th October through Monday 31st October).

getmore4less

Completing a remortgage on a Friday!

lets hope nothing goes wrong.

Thrugelmir

Yalden wrote: »

That was my assumption but +£190 seems high for four days interest (completion on 28th October through Monday 31st October).

Nationwide collect the first months interest in advance rather than in arrears.

interest charged in the month of advance