Mortgage payment after redemption paid

madzak

Hey,
Looking for some advice - I recently sold a BTL property (on 2nd October) and after paying the redemption figure I thought that was that.
However, the mortgage company are looking for another mortgage payment as the redemption figure was obtained the day after (11th October) a mortgage payment was due - direct debit would have been due on 10th.
I obviously cancelled the direct debit when the property sold and the mortgage company confirmed this in writing a week before I obtained the redemption figure.
My argument is that they should have added the 'owed' mortgage payment into the redemption figure.
They're arguing that I still need to pay it and are blaming systems/departments as the reason it wasn't added on.
Any advice appreciated.
Ta.

davidmcn

If their sums are right then you still owe the money. Have you seen the statement? Often they state explicitly that it assumes monthly payments will continue to be made.

theartfullodger

madzak wrote: »

.....I obviously cancelled the direct debit when the property sold and ....

Did you cancel it with both mortgage company and Bank?? In writing, keeping copy?

If there is an error I'm sure it will get sorted, in time..

madzak

I cancelled it with the bank and phoned the mortgage company to tell them why it had been cancelled - as I had sold the property. Mortgage company wrote to me and confirmed they were aware it had been cancelled a week before I received the redemption figure.
If they were aware it had been cancelled, why would they still expect payment? Surely they would just add it on to the redemption figure?

saajan_12

madzak wrote: »

Hey,
Looking for some advice - I recently sold a BTL property (on 2nd October) and after paying the redemption figure I thought that was that.
However, the mortgage company are looking for another mortgage payment as the redemption figure was obtained the day after (11th October) a mortgage payment was due - direct debit would have been due on 10th.- they were looking for it on 10 Oct, they're only looking for it after the redemption because you didn't pay it while you still had the mortgage.
I obviously cancelled the direct debit when the property sold - when was completion? you agreeing a sale is very different to actually selling it. I double the redemption figure was calced after the completion. Until that point, you still owned the property and still hada mortgage, which you should have been paying as usual. and the mortgage company confirmed this in writing a week before I obtained the redemption figure.
My argument is that they should have added the 'owed' mortgage payment into the redemption figure. - why does this affect you? they're charging it separately.. so what?
They're arguing that I still need to pay it and are blaming systems/departments as the reason it wasn't added on. - 1 day is very quick to expect the missing payment to feed through.
Any advice appreciated.
Ta.

What's the issue? So they calculated the redemption figure (R) as if you did make the last mortgage payment by direct debit(D).. you just need to now make that payment (D) so you'll have paid £R+£D. If they calculated the figure as if you didn't make the last payment, then the redemption figure would have increased by the same amount and you'd have paid $R+D all together on 11 Oct.

£R + £D = £(R+D).

It's the same thing.. just pay it

madzak

The issue is they have miscalculated what I owe and have came looking for an extra mortgage payment after giving me a redemption figure.
The property completed on 2nd October, 8 days before the 'next' mortgage payment would have been due and they were fully aware that it had completed on that date as well as knowing that the direct debit had been cancelled - why would I not cancel it?
And why would they charge it separately? Surely the whole purpose of a redemption figure is to pay off what is owed?
It wasn't one day, they had almost 2 weeks notice that the DD was cancelled.
And it affects me because they're expecting me to pay hundreds of pounds weeks after the property was sold!

davidmcn

madzak wrote: »

And it affects me because they're expecting me to pay hundreds of pounds weeks after the property was sold!

They're expecting you to pay the correct amount you're due to pay under your mortgage agreement.

If the "error" was the other way round, would you think them entitled just to keep your money?

G_M

Assuming you are right and they 'mis-calculated', that does not mean you don't owe them!

kingstreet

The redemption statement issued to your solicitor should be totally unambiguous.

It should state a redemption figure for the requested redemption date and a last payment date used to arrive at that figure. This tells you when your last payment will be.

If you made a payment after the redemption took place, the payment would be returned to your account after a week or so...