Remortgage from Santander

parnellx

Hi,

We've currently in the process of remortgaging from Santander to Coventry.
The solicitors have obtained a redemption statement from Santander that is valid for 7 days and are set to complete on the 4th December.

The statement states is assumes there are no credits between now and when the mortgage is redeemed, however our mortgage is usually taken on the 1st so this will be credited between now and the 4th and the redemption fee will therefore change.

What would usually happen in this scenario, the solicitors are working on the figure on the redemption statement that doesn't include the credit. Will the surplus bounce back to me somehow?!

davidmcn

Yes, any surplus is normally refunded immediately - either to you or to the solicitors (who will pass it back to you), can't remember what Santander normally do. Easiest just to let them happen unless you're genuinely short of cash.

kingstreet

Here's the bones of an email sent to a client a few days ago along the same lines;-

"Here are the scenarios. Please choose the one you feel most comfortable with. The 1st December payment will not be taken into account in your redemption statement for the close of your existing mortgage.

Leave the DDM in place

If you do this, the payment will go out of your account on 1st and if you completed on 30th November, the payment will be refunded back to your account after a few days. If you don't complete on 30th November, you don't have to worry about making sure the payment is made.

Cancel the DDM

If you do this, the payment won't go out provided you do it at least three working days before the due date. If you complete on 30th November, all will be fine. If you don't complete, you MUST call Halifax (on 30th) and make the payment by card ASAP to avoid an arrears marker being added to your credit file which will cause you credit issues for several years.

Neither way is perfect, but careful management is needed whichever option you select."

parnellx

That's really helpful thank you. Funny that you have an example to hand that you have given to a client.

I would be more comfortable with leaving the DDM in place as the solicitors haven't been the most reliable so would be nervous about for some reason not completing on the 4th.

So in my case, its slightly different as the DDM will be taken out just before completing rather than other way around. Assume its the same principle though? I have the money in the account for this to happen as long as one way or another it makes its way back to me!

kingstreet

It's something we get asked several times a year. Same with what their first payment will be and when.

The issue is proximity of DDM to completion. Whichever happens first has no impact on that. The redemption figure will assume last payment has already been made.