Remortaging - is the amount of money transferred supposed to be exact

Cliveclive13

Hello all

We recently went through a remortage and the end of the process confused me slightly (and the conveyancer doesn't want to help).

Basically, I was assuming that once the conveyencer received the redemption statment from our old bank, they would request that amount of money from the bank, not the full offer amount.

However, the conveyancer instead recieved the full amount and sent us a check for the difference. Is that normally what happens? (never done a remortage before).

I assumed it worked my way because a) No one knows what the actual amount will be until the redemption statement gets sent out and b) we ticked some boxes on the conveyancer's forms saying we weren't expecting to under or over borrow. Because the process took a little while (i.e we made a monthly payment in the meantime) the check is for a reasonable amount.

It's not really an issue, as our ERC's are low so we can just overpay back in, but I'd like to know if I had totally the wrong end of the stick! Is this how it's supposed to be? Are we supposed to get the offer revised down by the bank each month as we continue to make payments before the remortage completes?

Thanks for any help!

bengalknights

This is how its been with my mortgages when ive switched assumed its the norm.

kingstreet

Cliveclive13 wrote: »

However, the conveyancer instead recieved the full amount and sent us a cheque for the difference. Is that normally what happens?

Yes. That is precisely what happens.

LRmortgage

With most lenders that is exactly what happens, you get the amount you apply for. Usually they allow a tolerance amount over the remortgage amount and you get the difference back. It’s not open ended though, as otherwise people would just apply for more than is needed and not go through the proper application process if they need additional funds. I think the tolerance with most lenders is a thousand pounds or so.

A couple of lenders, HSBC for sure and I think also Metro Bank will only release to the Solicitor the exact amount of the remortgage based on the redemption figure.