Redemption Statement

Moneygrabber89

I'm sorry for yet another message guys but would appreciate some of your knowledgeable information.
My solicitor has requested a redemption statement from my mortgage company. On this it states i have an early repayment however it was agreed that as I'm porting mortgage to higher priced property (taking more loan) the early repayment won't be required. I have since contacted the bank and requested a new statement and once again this is included.
My mortgage was with Tesco's mortgage who went bust and has been taken over my Halifax (Tesco servicing team) which is making it even more complicated. 
A member of halifax is planning on speaking to my solicitor in the next few days to confirm i dont have to pay it however my solicitor is due to request my funds on monday. Will her not receiving correct redemption statement affect her applying for release of funds?

Thanks again

davidmcn

It won't affect release of funds, it will affect how much she needs to redeem the old mortgage.

Moneygrabber89

So even if she receives this before the 18th which is the planned move date that will be fine?

davidmcn

Moneygrabber89 said:

So even if she receives this before the 18th which is the planned move date that will be fine?

Yes. Though might be cutting it fine if there aren't otherwise going to be sufficient funds to cover the ERC if needed.

eddddy

I'd guess it might affect the release of funds in that Halifax would only send over the net amount (if the problem hasn't been resolved before then).

i.e. I wouldn't have thought Halifax would release the full amount of your new mortgage to your solicitor - then expect your solicitor to send back the balance of your old mortgage and the redemption charge to Halifax.

However, I expect that your solicitor would have prepared a completion statement based on the (incorrect) redemption statement, which would mean he/she will have sufficient funds to complete.

It sounds like Halifax have confirmed that they are treating this as 'porting your mortgage' with no ERC - which is good. If you had just applied for a mortgage through their standard channels, it probably wouldn't have counted as 'porting'.

davidmcn

eddddy said:

i.e. I wouldn't have thought Halifax would release the full amount of your new mortgage to your solicitor - then expect your solicitor to send back the balance of your old mortgage and the redemption charge to Halifax.

I've never known lenders to do this. They would normally treat the old and new accounts as separate.

Thrugelmir

Did you receive definitive confirmation from the Halifax that the ERC wouldn't apply?  Tesco and Halifax are different legal entities in terms of the mortgage products applied for. 

eddddy

Thrugelmir said:

Did you receive definitive confirmation from the Halifax that the ERC wouldn't apply?  Tesco and Halifax are different legal entities in terms of the mortgage products applied for. 

Tesco's original mortgage contract probably stated that the mortgage could be ported with no ERC - and Halifax would be bound by those terms.

I'd be surprised if Tesco's contract added something like "...unless we sell our mortgage business to another company."

But it's very possible that the extra borrowing (to make up the bigger mortgage) has different terms - which are more like Halifax's standard terms.

However, the OP would have had to follow the porting process, as opposed to just applying for a new mortgage (potentially offering a bunch of 'new mortgage incentives').

Thrugelmir

eddddy said:

Thrugelmir said:

Did you receive definitive confirmation from the Halifax that the ERC wouldn't apply?  Tesco and Halifax are different legal entities in terms of the mortgage products applied for. 

Tesco's original mortgage contract probably stated that the mortgage could be ported with no ERC - and Halifax would be bound by those terms.

Halifax aren't bound by the terms. The mortgage books are legally separate entities. Tesco (as a mortgage provider) aren't offering new mortgages. Halifax will need to take the existing mortgage (loan) onto their own books. 

eddddy

Thrugelmir said:

Halifax aren't bound by the terms. 

Why not?

Halifax can't buy Tesco's mortgage business and then ignore Tesco's contractual obligations. That would be nonsensical.

Halifax take over Tesco's contractual obligations as part of the deal.

Thrugelmir

eddddy said:

Thrugelmir said:

Halifax aren't bound by the terms. 

Why not?

Halifax can't buy Tesco's business and then ignore Tesco's contractual obligations. That would be nonsensical.

Tesco's mortgage business will be ring fenced in a separate legal entity. While it is run down. The mortgages are still on Tesco's system, hence why Tesco staff are still administering. Porting isn't a contractual right either.