Remortgage - Sync'ing From Old To New

Matrix_Keeper

I'm about to complete my first re-mortgage - getting last minute worries! The redemption penalty on my current mortgage expires on 31st Oct 2005. Obviously I want the new mortgage to begin thereafter and have noted this on the remortgage questionnaire. Ticking "No" - I'm not happy for the re-mortgage to complete regardless of the penalty.

For those who've done this before - is this always a smooth transition.

What happens if the new mortgage provider makes an error and tries to complete before the redemption penalty expires. In such a situation obviously the original mortgage provider will try and enforce the penalty.

Experiences??

Joe_Bloggs

Why not mention your old lender and your new lender to be clear. It would avoid confusion. With which party did you tick the box. Expect to have to sign lots of solicitors forms regarding permission to seek a redemption quote, understanding of new mortgage terms and conditions (witnessed), date of completion and total, land registry etc. Completion means very little as discharge of the original mortgage is the key. This can be several weeks after completion so you may end up paying for two mortgages at the same time . All monies will be refunded in the end but cashflow may be an issue as will the lack of perceptible activity of the mortgage departments concerned.
J_B.

Matrix_Keeper

Thanks Joe. Sorry for confusion. Old lender - Scottish Widows. New Lender - Halifax. Halifax's lawyers DLA are handling the remortgage. They sent the Mortgage Deed and accompanying Questionnaire. Both docs we completed and sent back. It was this questionnaire that asked the questions:-

Do you have a redemption penalty on current mortgage? (Answer Yes)
When do they expire? (31/10/05)
Are you happy for us to complete regardless of penalty (Answer No)

Most recent correspondence from DLA stated that they requested our title deeds and redemption figure from our mortgage lender (Scottish Widows). They say they will contact us with the redemption figure.

Have not heard anything since from DLA.

Meanwhile, independent of DLA, we did hear from Halifax who stated in their offer doc that our new mortgage would begin 16/10/05. Which is 15 days before our Scottish Widows penalty period expires.

I informed DLA of this - heard nothing.

What if Scottish Widows redeem then - we'll be hit with a penalty charge of £9k.

I anticipate a busy morning on Monday talking to all the parties.

Prognosis??

herbiesjp

You dictate the timescales for when the re-mortgage completes or not - so if you have got a penalty you have to specify to DLA that it cannot complete before that date.

Matrix_Keeper

herbiesjp wrote:

....you have to specify to DLA that it cannot complete before that date.

which I've done in the official questionnaire - so if DLA / Halifax try and complete before the expiry date and Scottish Widows process it, charging me in the process - who do I go after for the refund?

Joe_Bloggs

There is clarity now. I just left Halifax (IF. via HBOS). They were very good but were two weeks behind with the completion event with respect to the discharge event. The other IF. staff could not even contact the mortgage department as the phone was forever engaged.
Check with Halifax and get the name of someone who is in charge. Similar for DLA. There is nothing abnormal about the extra stress that remortgaging creates. The re-mortgagee often has to hand hold the parties through the process.
J_B.

herbiesjp

Halifax would only release the funds upon instruction from your solicitor (DLA) - so if this did not happen at the right time you would have to complain against the solicitor and take any needed course of action.

Please remember that a re-mortgage does also entail necessary legal work, so people who leave it until the last minute to move onto a better scheme, can sometimes find themselves going onto SVR for a period of time - which would not be the fault of the solicitor - slightly different angle to what the OP originally asked.