Redemption Figure

mgarl10024

Good morning,

Just after a general steer on what is normal practice.

I have a mortgage which I intend to pay off on 1st March.
It is in a product until the end of Feb which has a nasty early repayment charge, so I want to pay the day after.
My regular payments are at the end of the month, so one will fall on Feb 28th.

My bank says they require a working day to set up the CHAPs payment to the mortgage company, so I simply want the required redemption figure for 1st March, which
- Doesn't contain the ERC, as it wont apply on that date
- Takes the Feb 28th payment into account.

The mortgage company says that it is impossible to produce this and that they can't confirm what the payment needs to be, and that I need to phone on the 1st March. The calculation is simple and I even calculated it for them, but they wont confirm it.

I pushed and got a March 1st figure with the ERC removed ("as a goodwill gesture") but which still doesn't take Feb's payment into account ("as it hasn't been made yet"). Their advice is to overpay the wrong redemption figure and then claim a refund for Feb's payment, or pay an amount minus the Feb payment "at my own risk".

In the past, I've worked with mortgage companies and requested redemption figures weeks into the future. To me, this seems normal. Surely they just produce a figure for the 1st March and put on it "subject to all normal payments being made". It just seems so easy and what most people would want.

However, the mortgage company says that this simply isn't how things normally work and that my request is unusual, and this is why their processes can't cope with the request.

So, is a future dated redemption figure with the correct ERC and taking future payments into account a normal thing that most mortgage companies can do?

Thanks,

benten69

Why not just ask them for a redemption figure on March 1st and then setup the payment with your bank the same day which means they mortgage company will receive payment on the 2nd March. Is one single day really that much of a problem? Will it really incur that much extra interest to cause concern?

I mean if they are being stubborn, just play the game, it's only 1 day difference, not exactly a deal breaker.

mgarl10024

benten69 wrote: »

Will it really incur that much extra interest to cause concern?

No, it wont concern me that greatly.
But if I pay the March 1st figure on March 2nd, I wont have redeemed the mortgage as there will be a day's interest outstanding.

(I guess I could phone up on March 1st and ask for the March 2nd redemption figure (free of ERCs and payments) and hope they can cope with that.)

Just trying to gauge what was normal, and whether my request was unusual.

davidmcn

It sounds like it's just the fact the statement is for a date beyond your current product which is causing the problem. So as above, you could ask for any date in March as long as you make the request in March. Or you overpay and wait for the refund to come (typically pretty quick). The solicitors will almost certainly go by the statement rather than believe you about any payments you claim to have made.