A redemption statement is a formal document your mortgage lender provides that sets out the total amount you need to pay to clear your mortgage completely. It includes the outstanding loan balance, any accrued interest up to the redemption date, and any applicable fees such as an early repayment charge or administration fee.
You will need a redemption statement if you are remortgaging to a new lender, selling your property, or simply paying off your mortgage early. Your solicitor or new lender will usually request this on your behalf, but you can also request one directly.
The figure on a redemption statement is only valid for a specific date because interest continues to accrue daily. If the repayment happens on a different date, the amount will be slightly different. Most lenders provide the statement free of charge, though some may charge a small administration fee.
You are remortgaging to a new lender. Your solicitor requests a redemption statement from your current lender, which shows you owe £185,432.17 if repaid on 15 April. This figure includes the outstanding balance, daily interest to that date, and a £50 administration fee.
Key Points
- Shows the exact amount needed to clear your mortgage on a specific date
- Includes outstanding balance, accrued interest and any applicable fees
- Required when remortgaging, selling, or paying off your mortgage
- The figure changes daily as interest continues to accrue
- Usually requested by your solicitor or new lender on your behalf