Mortgage Lender Refuses to Provide Redemption Figure

SDN8BD

All, just after a little advice to what seems like fairly unusual practice from my current lender (The Nottingham Building Society) which seems a little sneaky/underhand.


Our current fixed term mortgage with them ends on 3/12/18 and we are moving to a 5year fixed deal with another lender. The plan, as with our previous remortgages is to arrange completion on, or as close to the date of the fixed term ending as possible to avoid moving onto the much higher interest rate variable rate mortgage. The solicitor acting on behalf of our new lender has today contacted me to tell me that the Nottingham will not provide them with a redemption figure for the end of our fixed term (in 10 days) and will only provide one which includes an early repayment charge. They are only willing to provide the correct redemption amount without the early repayment charge on the 3rd. This means that completion will be delayed and we are forced (by their actions) to spend a time on the higher rate variable mortgage whilst a completion date is negotiated and completed.


This doesn't seem right to me and the solicitor and our mortgage advisor say that it is not usual practice.


Cheers,
Steve

TrickyDicky101

Seems unusual to me (and unreasonable). I would contact your lender and say you wish to raise a complaint. Keep it polite but make it clear you are complaining and the reason why and state what you want (ie your redemption figure without the ERC) and ask for their final response as you wish to refer your complaint to the FOS should they fail to provide the redemption statement.

You should be able to estimate what your redemption figure should be but I presume the solicitor needs to know in his capacity of acting for your new lender?

foxy-stoat

In the past dealings with some lenders they are not able to give you a redemption figure based on a future date, only on the day its asked.

How much extra will a few days of interest be ?

Begsey

Worked the same way for us when our solicitor (moving to Nationwide) asked for a redemption figure from RBS.
The figure they got included penalties.
They simply asked again once our RBS fixed rate ended. It delayed completion for a week or so.

dimbo61

Ask for the current balance?
Are you going to be making a payment in the next 10 days ?
Ask when the Early repayment charges ends

davidmcn

SDN8BD wrote: »

we are forced (by their actions) to spend a time on the higher rate variable mortgage whilst a completion date is negotiated and completed

Presumably only a matter of days though - how much money are we talking about?

Thrugelmir

SDN8BD wrote: »

They are only willing to provide the correct redemption amount without the early repayment charge on the 3rd.

At the current time the redemption charge applies. The statement is therefore correct.