Redemption statement for only part of a mortgage

Murphyspaw6

Hi there, just wondered if anyone could shed some light on this. I have a mortgage with NatWest. 

Has anyone ever heard of / been required to receive a redemption statement for only part of their mortgage? Is this a thing? I have scoured Google and everything I find insists a redemption statement is only relevant if paying off a mortgage IN FULL. 

£290K repayment mortgage, was on a 2yr 1.5% fixed rate with 16 years to run. 

This relates to a separate ‘part’ added to the mortgage account the previous year on a variable rate, for 1 year only, amounting to only £1200 at the time I was trying to pay it off (which was less than 1 month payment of the main mortgage which was around £1800/month at this time). 

Natwest insisted the only way  it could be paid off separately was by sending me a redemption statement. Which kept not arriving so this turned into a huge palaver as it was precluding the fixing of a new rate on my main mortgage. Mortgage was up to date with no arrears.  Multiple phone calls, being passed around departments and I was in tears at one point trying to sort this out with them. 

They said any additional payments I made would be spread across the entire mortgage, not against this part. So they were claiming that no one / no department had the ability to take a payment of @ £1200 to clear this specific ‘part’ of the mortgage. Unless they generated/ sent me a redemption statement first. The whole thing seemed like madness to me and made absolutely no sense. As the exact figure will change daily due to the application of interest and they weren’t stating any specific day to make a final payment. They couldn’t tell me when it would arrive beyond suggesting it would likely arrive within a couple of weeks.  I was just told to wait for the magical redemption statement to arrive, then I could call and pay it.

I also had thought in a situation where part of the mortgage was on a higher interest rate, extra payments would automatically be applied to pay down the higher rate component first. They said this was not the case.  

i even told them I was happy to pay an extra £200, so let’s say £1400, and then any extra could just be applied to my main mortgage (which allows 10% overpayments so this was no issue either).
But that wasn’t acceptable either, and again I was just told they would send me out a redemption statement and I could then call to make the payment. 

Just wondered if anyone can shed some light on this.  Or let me know their experiences when paying off only part of their mortgage.

thank you 

BarelySentientAI

You're redeeming that part, so it needs a redemption payment - that makes sense. 

If repayments went preferentially towards the higher interest part, that would not comply with the agreed term of that part, so it can't happen that way - it's not like a credit card debt. 

Payments, and extra payments if made without specific pre agreed arrangements, are usually split pro rata between parts based on the balance of each part.

Hoenir

For a balance of £1,200. Would it matter if you overpaid by a few pounds. As any excess would be refunded anyway. I'd have simply sent a cheque with a covering letter. Then job done.