Remortgage Escalated Query

Completion Timescales
You can rest assured that we are always working to our service standards date provided that

• no issues have arisen and
• there are no delays in materials reaching us

these both mean that the “clock stops”. We explained how timing works in previous correspondence.

Our targets are

• Where there is an Early Redemption Charge (ERC), if we received sufficient notice of the transaction (at least 20 working days) then the target is within three working days of the termination of the ERC. It is important to note that this means that the case does not automatically complete on the expiry of the ERC. The more complex the issues, the more likely there is to be a delay.
• In a case not involving an ERC, the target is 20 working days from the later of receipt of the mortgage offer and the remortgage questionnaire.

Please do not phone or email to accelerate completion. Your case will complete as soon as it can and time spent dealing with queries may delay matters! If you do need to contact us use the form that follows

I do not understand or agree with my redemption statement

We cannot resolve this for you because of data and other restrictions imposed by most lenders. This is part of the frustrations with the modern world caused by regulation to protect consumers.

Once you have spoken with your lender you will have all the information.

Once you have resolved issues please return to the App that we will have sent you and complete it accordingly.

A quick PS: If your existing lender is revising the redemtion figure make sure they send the new version to us.

Another quick PS (!): If you have an Early Redemption Charge remember that will stay on the Redemption Statement until after the ERC Expiry Date. The Redemption Statement will include sufficient information to show when the ERC expires.

 

Shortfalls

Shortfalls are a rather perplexing part of remortgaging.

Let’s start with the easy situations…….

• You have built up some savings and want to reduce the size of your mortgage when remortgaging. You will be aware that you will need to pay some money at the time of the remortgage. For regulatory purposes if the amount you will be repaying is greater than £4000 it is far superior for you to pay that direct to your existing lender but be careful not to do that until it does not invoke any ERC issue
• You are borrowing a greater amount than your existing mortgage. There will be money left over after repayment of your existing mortgage which will be sent to you on completion of the remortgage.

Now for the more difficult example……..

Where you are taking a “like for like” remortgage it can be very difficult to pick the right figure. For all sorts of reasons (application of interest, lender costs etc) the amount you owe on the remortgage date can be slightly higher or lower than the figure you envisage.

Of course, you will receive all the information but many borrowers waste time questioning the figures because they are slightly higher than expected causing a shortfall.

Any challenge must be made by you directly to your existing lender.

If you accept the shortfall then you will need to pay a balancing amount to us or alternatively seek an amended loan offer which will delay matters. Some lenders providing new mortgages may have different solutions detailed in their mortgage offer or paperwork.

 

Payments Issues

I have just recently made a payment on my existing mortgage, how will this affect my Remortgage?

The amount required to repay your existing lender may change depending on when the payment was made compared to the date when your Redemption Statement was issued.

Payment made before?
If you made the payment before the date on the Redemption Statement upon which we are reliant, then the redemption figure will be correct.

Payment made after?
If you made the payment after the date on the Redemption Statement, there are two options:

FIRST We can request an updated redemption figure which could delay completion of your Remortgage and involve your existing lender making a further charge for another redemption figure.

SECOND. If an earlier completion is your priority we pay your existing lender the amount on the redemption figure which we hold at completion. If this occurs then the overpayment would be repaid to you by the existing (soon to be ex) lender though the time period in which they will do that can vary from a couple of days to a month.

I have a payment to my existing lender due soon should I cancel it?/Will it be refunded?

The easy answer here relates to any refund due by a lender: any overpayment to a lender will be refunded to you. This can vary from lender to lender but you should receive this within one month of the payment being made.

Any decision to cancel your standing order or direct debit to your existing lender is your responsibility. The best advice is not to cancel the direct debit or standing order as potentially such an action might end up on your credit record if a payment became due and was not paid. In those circumstances technically you would be in breach of your existing mortgage agreement. Naturally there is a desire on the part of many clients to time such payments so that they do not end up making two payments in a short period even though any excess will be refunded. If the payment to your existing lender is just before completion is intended for your new mortgage then you may feel more relaxed in cancelling the existing payment but the correct advice remains that all payments are made.

When is my first payment of my new Mortgage due?

This will be determined by your new lender. You may well find the information within the terms of your new loan offer but you can contact your new lender regarding this and their details will be in your Loan offer. If you are using a Mortgage broker, they may be able to obtain this information for you.

I would like my payments to come out on the __ of the month can you arrange this?

We cannot control the date on which the lender will withdraw your mortgage payment. You should contact them regarding this and details of how to contact them should be in your Loan offer. If you are using a Mortgage broker, they may be able to get this information for you.

McVey & Murricane can never stop or make any payment for you. Only you can do that. All actions relating to your interactions will be dealt with by you or your lenders through their direct debits. You should monitor your bank account to ensure that matters are proceeding as you expect. Rememeber your existing lender will take no action until their existing mortgage has been repaid by us. Indeed it may take their system a little time to adjust.  As much as we wish otherwise we have no control over these elements and you need to deal with these yourself. If you ask us to impact or influence these types of issues it is regrettably a waste of your time