Incorrect Redemption Statement (Selling Property)

h3lpm3plz

Hi there,

Seeking advice for what looks to be an inaccurate redemption statement:

The mortgage was issued 01 Jul 24 for approx £540,000.09. The redemption statement received (approx 15 months later) shows the redemption to be higher than the original mortgage. 

Balance as at 01 Jan 25 £538422.17

Early Repayment Charge £5312.60 (this we’re aware of due to selling property within the 2year fixed term)

Interest to redemption date £35565.55

Repayments this year £25637.13

Redemption figure £554013.19

I’m curious to see if this has happened to anyone before? It seems the repayments have not been taken into account and we have about £15k unaccounted for. 

kingstreet

With repayments lower than interest charges the balance would be higher. How does this compare with your annual mortgage statement?

theartfullodger

Will depend on EXACT terms of your mortgage. (Did you ever read all the documentation?? I never did for any of my (now aged 77) various mortgages.  (including the one which under Thatcher's rules ended up with interest at 17% )  When you asked your lender (who will know details etc..) what did they say?? Was it interest only?? 

Funnily enough I'm paying off my one remaining mortgage, just asked for redemption statement, but expecting it to be less than £7k.

Best wishes to all.

silvercar

Query it with the lender. 

Looking at your figures suggests that they’ve included only this years repayments not last years but included the interest since the start. They should be able to explain it to you 

sheramber

Is the difference between the original mortgage figure  at July 24 and the figure at 1 Jan 25 the payments made between these dates. 

Then working from the 1 Jan figure to get redemption figure. I make total charges 
579300.32 less 25637.13   To give 553663.19.

350.00 difference 

user1977

sheramber said:

350.00 difference 

Which sounds like a standard redemption fee (though would help if we knew which lender).

saajan_12

h3lpm3plz said:

Hi there,

Seeking advice for what looks to be an inaccurate redemption statement:

The mortgage was issued 01 Jul 24 for approx £540,000.09. The redemption statement received (approx 15 months later) shows the redemption to be higher than the original mortgage. 

Balance as at 01 Jan 25 £538422.17

Early Repayment Charge £5312.60 (this we’re aware of due to selling property within the 2year fixed term)

Interest to redemption date £35565.55

Repayments this year £25637.13

Redemption figure £554013.19

I’m curious to see if this has happened to anyone before? It seems the repayments have not been taken into account and we have about £15k unaccounted for. 

The main drivers the lines in bold.. repayments much lower than interest. 
* Interest for 9 months @ 5% on 540k mortgage would be ~20k, so the 35k looks high. Could they be talking about the interest over the whole mortgage? Or did you have a super high interest rate? 

* Repayments look in the right ballpark at ~2.5-3k x 9 months for a 4-5% mortgage over a 25 year term. However maybe not if you've missed payments or anything. 

I'd check the exact numbers on both those from and then query with the mortgage company.