Redemption Statement

Received from my Solicitor a copy of redemption statement from my present lender. It shows my mortgage balance and interest accrued until date of settlement(11th April)

But will this settlement figure not change between now and the settlement date as I have mortgage payments on the 1st March/April.

Reply to
Jack Victor
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As interest is normally calculated on a daily basis, then the amount you owe them would change by a few pounds each day.

Reply to
Adrian Boliston

Re-read question. Then wipe egg from face.

Reply to
Ronald Raygun

In message , Jack Victor writes

It will say on the statement which is the last payment taken into account. Usually, when a settlement day is specified, then it takes into account all payments received or to be received up until that day. The statement will also usually show a daily rate of interest accrual from the settlement day onwards if the final settlement is late.

Reply to
john boyle

The settlement figure does not take into account all the payments that would be received as the figure quoted is what is outstanding today. They don't seem to take into account the future mortgage payments.

Reply to
Jack Victor

In message , Jack Victor writes

This doesn't seem right. Do you mean they aren't even adding in the interest that will have accrued by then?

Is your mortgage a repayment type? Or interest only?

In any event you have some options.

1) Ask them for a new figure to take account of any intervening payments, but as this will need some brain power and perhaps the use of a calculator, so dot expect them to get this right. The complexity of answering this will depend on the lenders interest calculation method. 2) Dot make any further payments until the redemption day 3) Wait until after the last monthly payment you intend to make and then ask them again for a settlement figure

It seems a bit early to be asking for a redemption figure for redemption so far away. Sometimes, when solicitors call for deed/certs from mortgagees the lender gives a settlement figure anyway, or it could just be a 'range-finding' request from the solicitor to make sure that all the amounts etc., are in the right scale of figures for the transaction to go ahead, in which case he will likely ask for another redemption figure much nearer the time.

Reply to
john boyle

It's a repayment mortgage. I'll certainly ask my solicitors advice on this matter and enquire if no further mortgage payments are due until the settlement date. Thanks.

Reply to
Jack Victor

In message , Jack Victor writes

In that case I would ask more questions. I cant see how the redemption balance can be the same as the current outstanding balance.

Reply to
john boyle

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