Redemption charge on a variable rate mortgage?

Fingers Mcginty

Howdy folks,
I have 71K left owing on my mortgage and am purchasing a new home. The solicitor came back with a redemption figure of 73.5K ...what's this all about? :eek: Definitely didn't foresee that charge. (Hadn't heard of it until today)
I can understand being penalised for getting out of a fixed rate mortgage.
I will be contacting my solicitor tomorrow to get the low down but was just wondering if any of you good folks had ever experienced this?

Fingers Mcginty

Forget it and close the thread...Solicitor made a boo boo

Wyldwood

When we paid off our mortgage a few years ago we had to pay a redemption fee on a variable mortgage, can't remember the amount but it's common practice I think.

brendash

In the process of buying a house, which is going on and on and on!! Just when I thought i was at the last hurdle, the vendor is refusing to disclose the redemption figure..can someone explain to me why is she being so awkward.. cos I am losing me reason at this stage..

TheDriver

i had to pay 60 euro solicitor fee for the bank, nothing more

phormium

Are you correct in assuming there is 71k left? What are you basing this on, is it last statement or what. There is normally no fee other than a vacate fee which is less than €100 for clearing a variable mortgage so there should not be a huge difference. Some banks take into account the amount of one repayment extra depending on the date you are clearing it in case your last payment bounces for any reason, it is usually refunded later.

brendash

So it is up to my solicitor to contact the vendors bank, rather than her contacting the vendor's solicitor in order to obtain the redemption figure?

phormium

Sorry OP, didn't notice you had solved the problem.

brendash, confused as to your question, the redemption figure has nothing to do with you as the purchaser of a property, it is up to the vendor to request or get her solicitor to request this from the lender. Why would the vendor tell you what she owes the bank? It is irrelevant to you, when you pay your solicitor for the property, he will give it to vendor's solicitor who will clear any outstanding mortgage.

brendash

For the last two months my solicitor has been requesting the redemption figure from the vendor's solicitor, who has refused to produce it, hence making buying this house an ongoing saga!! So according to you, my solicitor is in the wrong and is the cause of the delay of sale. Give me patience.... and thanks for clearing that up for me

phormium

There is some misunderstanding going on there, I can't imagine your solicitor is looking for a redemption figure for the vendor's mortgage, it doesn't make sense, it must be something else that is outstanding.

brendash

I wish there was, as I'm quite annoyed now, but nope it is definitely the redemption figure she is looking for, and said that she was going to send them a split cheque, one going to the vendors lender and the other to the vendor...

phormium

Never heard that one before, must be a requirement of the lender to release the property for sale or something, this is not the norm so who knows why they are delaying it so!

TheDriver

In my case, my solicitor requested the redemption figure and then wrote to the buyers solicitor stating that the property was not in negative equity. You can't have your redemption figures going to the buyer, thats a breach of data protection and also shows your cards.

phormium

It would make more sense alright if the property was in negative equity, then you might see where the bank would be insisting on cheque straight to them as a condition of their agreement to short sale, but in this case if there is a surplus I really don't understand what the redemption figure has to do with the purchaser's solicitor.