Redemption figure v Annual statement

spud17

My mortgage deal finished on 31-12-07.

I found a deal with another company and due to the bank holiday, completion took place on 02-01-08.

The redemption figure obtained by the solicitors (free with the deal) dated 02-01-08 was £XX,922.01.

This includes £199 admin and £25 for redemption certificate.

I have now received my annual statement from the original company with a loan outstanding figure for 31-12-07 of £XX155.15.

This means 2 days interest = £542.86.

I have spoken to CS but the person only seemed able to read back the figures on the annual statement.
They have however agreed to send me a copy of the redemption statement.

Have I mis-read the situation and overlooked something basic?

Any comments welcome.
Apologies if I do not reply immediately, I only manage to get on here evenings, and am busy at the moment.

Madjock

It's more likely to have had a month's interest added going on those figures.

spud17

IIRC interest was calculated daily and was around £5/day.
I was just interested in getting other peoples initial thoughts while I waited for the copy of the redemption certificate to arrive.

NeilQuinn

You pay interest up to the end of the month in which the mortgage is redeemed, usually. Although you've redeemed on 02/01 - you've paid interest until 31/01

PBA

NeilQuinn wrote: »

You pay interest up to the end of the month in which the mortgage is redeemed, usually. Although you've redeemed on 02/01 - you've paid interest until 31/01

Is this pretty standard then, even for lenders who calculate interest daily? Surely that would mean it's sensible to complete on a remortgage as late as possible in the month.

Madjock

if the mortgage was on daily rest it may be that you've been charged a month's interest as notice. Many lenders require a month's notice that you intend to redeem the mortgage even once your penalty period is up. If it's not because of being on monthly rest or this then I don't know why you've paid so much interest. If you still have the mortgage offer you got from them it's worth checking the redemption information on there.

spud17

Cheers folks, but £542 is way over a months payment even allowing for my voluntary static overpayment.
They would have known at the end of November that I was intending to move, redemption penalties finished on 31-12-07, hence the reason for holding off completion until 02-01-08.
Will phone tomorrow to chase up the promised copy of redemption statement.

spud17

If anyone cares, it's now sorted.

I went through the figures with a fine tooth comb.

I made a one off payment of £550 at the end of November to make sure of using my full 10% overpayment of capital, to make full use of the lower interest rate. ( I'd gone for a 2yr fixed when I moved in Jan 2006).

When the conveyancer asked for a preliminary redemption figure on 03-12-07 (to check figures I'd given were in order), my account was effectively frozen.

This did not come apparent until mid-January when £550 was automatically refunded to my bank account, along with January's DD which was taken in the early hours of 02-01-08 before completion.

The £550 had not been "fully processed" and was rejected, but was included in the final statement for some reason.

This is what threw me.

The difference of £542ish between the redemption figure and the final statement is actually £550 minus 2 days (1st+2nd Jan) interest.