Which lender, which form, which date?
A seller has a mortgage and a second loan secured on the property. The case handler requests redemption statements from both lenders: one by a form on its website, one by letter with the seller's signed authority. One arrives by post two weeks later, valid until a date that is now close. The other has not arrived. Completion is set for next Friday.
When the first statement is updated, the figure changes, and the completion statement has to be rebuilt.
Why redemption statements are fiddly
Lenders have different processes, different authority requirements and different formats. Some require the borrower's authority, some accept the firm's request, some have online portals. Statements are valid for a limited period, and completion dates move.
Additional charges on the title (second loans, help to buy style loans, charging orders) each need their own redemption figure, and are easy to miss if the title is not checked for them at the start.
| Issue | Effect |
|---|---|
| Different request processes | Requests take time and some are rejected |
| Statements expire | New statement needed if completion moves |
| Several charges on the title | One redemption figure missed |
| Figures retyped | Errors in the completion statement |
What redemption problems cost
A missing or expired redemption figure can hold up completion day, or lead to paying the wrong amount, which then needs correcting with the lender. Case handlers spend time ringing lenders' redemption departments. Sellers are anxious about the figures they will receive.
Errors in redemption figures are among the harder mistakes to put right after completion.
There is a quieter cost in the case handler's week, too. Redemption departments often have long phone queues, and a case handler waiting on hold for a figure is not progressing anything else. When several sales are heading for completion in the same week, those calls stack up at exactly the point the file needs the most attention.
How we build redemption statement handling
- Charges from the title: at instruction, the tool reads the title register and lists every registered charge, so each needs a redemption figure.
- Lender profiles: for each lender, your team records how statements are requested (portal, email, letter) and what authority is needed.
- Requests at the right time: requests are prepared with the right authority and details, and sent when the file reaches the stage your firm chooses, then again before completion for an up-to-date figure.
- Tracking: each request is tracked, with chasers and a list of outstanding statements.
- Figure capture: when a statement arrives, the redemption figure, daily interest and expiry date are read and proposed to the case handler to confirm, and the completion figures are updated.
- Expiry watch: if completion is likely to fall after a statement's expiry, a fresh request is prompted.
What completion preparation looks like afterwards
Every charge has a redemption figure lined up. Requests go to lenders in the way each lender wants them. Figures are captured rather than retyped, and the completion statement updates. Expiries are watched. Completion day is not held up for a missing figure.
Sellers see accurate figures earlier.
Does this apply to you?
- Case handlers chase lenders for redemption statements by phone.
- Statements have expired before completion.
- Second charges have been noticed late.
- Redemption figures are retyped into the completion statement.
- Each lender's request process is kept in people's heads.