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

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Customer Service Administrator

    £13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...

    Recruitment Genius: Dialler Administrator

    £22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...

    Ashdown Group: Contracts Manager - City of London

    £35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...

    Guru Careers: Tax Manager / Accountant

    £35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...

    Day In a Page

    Blairites be warned, this could be the moment Labour turns into Syriza

    Andrew Grice: Inside Westminster

    Blairites be warned, this could be the moment Labour turns into Syriza
    HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

    The mystery of Britain's worst naval disaster is finally solved - 271 years later

    Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
    Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

    'I saw people so injured you couldn't tell if they were dead or alive'

    Nagasaki survivors on why Japan must not abandon its post-war pacifism
    Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

    The voter Obama tried hardest to keep onside

    Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen
    Secrets of comedy couples: What's it like when both you and your partner are stand-ups?

    Secrets of comedy couples

    What's it like when both you and your partner are stand-ups?
    Satya Nadella: As Windows 10 is launched can he return Microsoft to its former glory?

    Satya Nadella: The man to clean up for Windows?

    While Microsoft's founders spend their billions, the once-invincible tech company's new boss is trying to save it
    The best swimwear for men: From trunks to shorts, make a splash this summer

    The best swimwear for men

    From trunks to shorts, make a splash this summer
    Mark Hix recipes: Our chef tries his hand at a spot of summer foraging

    Mark Hix goes summer foraging

     A dinner party doesn't have to mean a trip to the supermarket
    Ashes 2015: With an audacious flourish, home hero Ian Bell ends all debate

    With an audacious flourish, the home hero ends all debate

    Ian Bell advances to Trent Bridge next week almost as undroppable as Alastair Cook and Joe Root, a cornerstone of England's new thinking, says Kevin Garside
    Aaron Ramsey interview: Wales midfielder determined to be centre of attention for Arsenal this season

    Aaron Ramsey interview

    Wales midfielder determined to be centre of attention for Arsenal this season
    Community Shield: Arsene Wenger needs to strike first blow in rivalry with Jose Mourinho

    Community Shield gives Wenger chance to strike first blow in rivalry with Mourinho

    As long as the Arsenal manager's run of games without a win over his Chelsea counterpart continues it will continue to dominate the narrative around the two men
    The unlikely rise of AFC Bournemouth - and what it says about English life

    Unlikely rise of AFC Bournemouth

    Bournemouth’s elevation to football’s top tier is one of the most improbable of recent times. But it’s illustrative of deeper and wider changes in English life
    A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

    A Very British Coup, part two

    New novel in pipeline as Jeremy Corbyn's rise inspires sequel
    Philae lander data show comets could have brought 'building blocks of life' to Earth

    Philae lander data show comets could have brought 'building blocks of life' to Earth

    Icy dust layer holds organic compounds similar to those found in living organisms