Help with redemption statement please

siblades

Hello,

We are remortgaging tomorrow and I have a question about the redemption statement received from our current lender, NatWest.

The redemption statement was calculated and produced today (07/11/2016) and all payments are up to date.

If I log onto my NatWest mortgage account online, my outstanding amount is £119,453.99 and my early exit penalty is £3,583.62, therefore the total redemption amount should be £123,037.61.

However, on the redemption statement they seem to have worked it out from our last annual statement which was in July 2016. The remaining amount from that statement was £120,879.92, they have then taken away repayments made since then (£3,032.12), added on the early exit penalty (£3,583.62) and then, this is the bit that's confusing me, they've added on a figure of £2,127.99 called "Interest to anticipated redemption date" (which is tomorrow). This gives a total redemption amount of £123,559.40 which is £521.79 more than the amount worked out above.

Is this correct? It feels like NatWest are going to be receiving £521.79 more than they should be which I'm not happy about.

If anyone can explain this to me I'd be really grateful.

Many thanks in advance

lee111s

Any additional funds will be returned if there's a surplus once the account balance is settled.

siblades

Thanks for your reply. But I think in NatWest's eyes the account balance to settle is £123,559.40 and therefore there won't be a surplus....

TrickyDicky101

The online balance probably does not include the current month's interest (mine with Nationwide certainly never does) thus understating what the true redemption figure should be.

What's your interest rate? I assume for what I've said to be likely it must be reasonably high?

SavingSteve

What TrickyDicky said is spot on. The interest calculation is daily, but don't add it on every day, so your online account view is out of date every day apart from the one day a month they add the interest on.

siblades

TrickyDicky101 wrote: »

The online balance probably does not include the current month's interest (mine with Nationwide certainly never does) thus understating what the true redemption figure should be.

What's your interest rate? I assume for what I've said to be likely it must be reasonably high?

Yes 5.29% hence the remortgage. Even after paying the exit fee we're going to be miles better off

siblades

Thanks chaps! Much appreciated