Confusion over mortgage redemption statement

bethjames5681

Determined to get a good mortgage deal, ahead of my current one ending at end Oct, I started shopping around at the beginning of May and quickly decided on one. We decided on one and arranged to have it kick in at the beginning of November.

Because I track my payments and overpayments, I had a good idea of what my balance would be, come the beginning of November, so based my remortgage amount on that. All fine, offer received, all good.

But, today I have received my mortgage redemption statement - which doesn't take any payments between now and then into account. It means that there's around a £6k difference, which I'm required to pay up front before the completion date. And have to pay a £30 "sourcing shortfall" fee to the conveyancer. I'm not worried about getting the money back from my current provider, as that seems par for the course. But having to go through this rigmarole of proving I have funds to pay a shortfall, which will have actually paid by the point I have to prove it and then pay that "shortfall" plus a fee to jump through these hoops just seems bizarre.

Is there any way to avoid this? Why don't redemption statements take regular payments into account, at least?

davidmcn

Given different lenders operate in different ways, it would probably help if you told us which one you're talking about.

bethjames5681

davidmcn said:

Given different lenders operate in different ways, it would probably help if you told us which one you're talking about.

Current provider is HSBC.

getmore4less

Why not just wait till October to get the proper redemption statement. 

bethjames5681

getmore4less said:

Why not just wait till October to get the proper redemption statement. 

I didn't know it was possible to that. As part of the application process, this was all handled by the conveyancer.

davidmcn

bethjames5681 said:

getmore4less said:

Why not just wait till October to get the proper redemption statement. 

I didn't know it was possible to that. As part of the application process, this was all handled by the conveyancer.

In practice they'll be getting an updated one closer to the time anyway. They've probably just got one at this stage because (usually!) it gives a reasonable indication of what's likely to be due (and would pick up things like any early redemption penalties which borrowers might have overlooked).

bethjames5681

Thank you - I'm going to chat to the conveyancer about that - seems like the obvious thing.

Thrugelmir

Lenders cannot forecast the future. There's no guarantee that you will make the intervening payments. Redemption statements are therefore issued as when they are required. Your conveyancer will request one at the appropriate time. 

Extremely early to be actioning a remortgage which isn't going to take effect for over 4 months . 

bethjames5681

Thrugelmir said:

Extremely early to be actioning a remortgage which isn't going to take effect for over 4 months . 

Thanks for confirming. Have actioned to lock in the rate - can get out at any time between then and now if a better deal comes along.