The Mortgage Clinic: 'My bank won't give me the figures I need'


Q. Can you tell me if lenders have a legal obligation to give their clients a redemption figure on an outstanding mortgage? My daughter has been trying for some months to find out how much it will cost to pay off her mortgage, because she would like to change to another lender. She's had a new offer, but is unable to proceed without this information. DM

A. Unfortunately for your daughter, there does not appear to be any legal obligation on a mortgage company to provide a redemption figure (the amount you have left to pay). These matters tend to be governed by good practice and companies' own internal procedures.

Ray Boulger, senior technical manager at mortgage brokers John Charcol, confirmed that there are no specific rules - but says it is rare for a lender to refuse to provide this information.

This will be of no help to your daughter, however. Her next step will depend on how far she has gone in her attempt to remortgage.

If she has approached her lender for a redemption figure, but has yet to instruct a solicitor to handle her remortgage, then it is likely that her bank or building society will provide the information when her solicitor contacts them. If the lender is not responding to her solicitors' requests, then she should consider making a formal complaint.

The good news is that there is no reason your daughter cannot press on with a new mortgage. It is relatively simple to estimate how much money she owes.

Most lenders send an annual mortgage statement in January. It is only February, so the figure will be very similar. Your daughter will have to pay accrued interest from the date of her last mortgage payment to when she moves her loan, but this is easy to work out based on the interest rate and size of her current mortgage.

Add a margin for error and ask the new lender to advance that figure. If she borrows from the Woolwich or Nationwide, and has a repayment mortgage, the sums will be a little more involved as their years run to September and March, respectively. If she pays more than she needs to, it might take time to recover that money from the first lender. But, as Boulger points out, if she is paying more interest than she needs to, then it is worth the risk.

Once the process is complete, your daughter could complain to her former lender and ask for compensation. The Financial Services Authority demands that lenders treat their customers fairly; that hardly seems to be happening here.

Confused about your mortgage options? Foxed by jargon? E-mail mortgageclinic@independent.co.uk

NB: we will not reveal your identity, and we cannot give specific advice

News
news
Sport
Danny Cipriani of England breaks clear to score his second try
rugby
Life and Style
New research says leaving your desk can help you to avoid serious illness
health
Arts and Entertainment
tvSPOILER ALERT: Like a mash-up of 28 Days Later, Braveheart, The Killing and Lord of the Rings, this GoT episode was a belter
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Payments Operations Assistant

    £23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

    Recruitment Genius: Telephone Debt Negotiator

    £13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

    Guru Careers: Communications Exec / PR Exec

    £25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...

    Guru Careers: Pricing Analyst

    £30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

    Day In a Page

    On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

    On your feet!

    Spending half the day standing 'reduces risk of heart attacks and cancer'
    Liverpool close in on Milner signing

    Liverpool close in on Milner signing

    Reds baulk at Christian Benteke £32.5m release clause
    With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

    The big NHS question

    Why are there so few new GPs when so many want to study medicine?
    Big knickers are back: Thongs ain't what they used to be

    Thongs ain't what they used to be

    Big knickers are back
    Thurston Moore interview

    Thurston Moore interview

    On living in London, Sonic Youth and musical memoirs
    In full bloom

    In full bloom

    Floral print womenswear
    From leading man to Elephant Man, Bradley Cooper is terrific

    From leading man to Elephant Man

    Bradley Cooper is terrific
    In this the person to restore our trust in the banks?

    In this the person to restore our trust in the banks?

    Dame Colette Bowe - interview
    When do the creative juices dry up?

    When do the creative juices dry up?

    David Lodge thinks he knows
    The 'Cher moment' happening across fashion just now

    Fashion's Cher moment

    Ageing beauty will always be more classy than all that booty
    Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

    Health fears over school cancer jab

    Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
    Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

    'I forgive everyone, but I don't forget'

    Fifa president Sepp Blatter issues defiant warning to opponents
    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

    Weather warning

    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
    LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

    High hopes for LSD

    Meet the volunteer users helping to see if it cures depression and addiction
    German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

    Saving Private Brandt

    A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral