What Is a Mortgage Redemption Statement and Why You Might Need One?

Understanding the final balance that is left on your mortgage can be crucially important. Whether you are planning to remortgage to a better deal, sell your current home, or pay off your total mortgage ahead of schedule, knowing the outstanding balance gives you control over your next steps.

One document plays a central role in understanding these costs: introducing the mortgage redemption statement…

But what is a mortgage redemption statement?

In this article, we cover everything you need to know about a redemption statement. From what a redemption statement includes, why lenders use them, and how to request one. Let’s begin.

What is a Mortgage Redemption Statement?

A mortgage redemption statement is an official document from your lender that shows the exact amount you need to pay to fully clear your mortgage on a specific date. This document goes beyond your simple monthly balance and will also include exact figures for your accrued interest, any early repayment charges, and account fees.

In short: a redemption statement will tell you the exact total figure required to pay off your mortgage.

It is most common for homeowners to request a redemption statement when they are:

• Selling their property
• Remortgaging to a new lender
• Paying off a mortgage loan early
• Transferring property during a divorce or separation

Without this document, understanding the final repayment amount can leave homeowners uncertain and can create stress about any unexpected costs.

What Details Are Included in a Mortgage Redemption Statement?

A mortgage redemption statement will provide a complete breakdown of the total amount you need to pay to clear your mortgage on a chosen date. This document is very detailed and will include outstanding capital alongside interest and any early repayment charges.

As such, the first thing you might notice on a mortgage redemption statement is that the total figure will often be different from the balance shown in your online mortgage account. This is because lenders will include any additional elements that build up between your last payment and the set redemption date.

Crucially, it’s important to understand that the figure on your mortgage redemption statement is the final balance. The difference between the mortgage balance and the redemption figure, will include any additional daily interest and any early closure costs.

Below we have created an overview of what you can expect to see on your mortgage redemption statement, and why it matters:

Being able to look at all of these details together can help you understand the full picture, and makes it clear why the difference between the mortgage balance and the redemption figure exists.

The core purpose of this document is to ensure the borrower knows exactly what they will need to pay, and is essential for anyone selling their home, remortgaging, or paying off a mortgage loan early.

Confused about your mortgage redemption statement?

At Boon Brokers, our dedicated mortgage advisers can walk you through the entire document, helping you review exactly what each figure means and why it matters. As a fee-free and whole of market mortgage broker, we can also check whether a remortgage is worth it, explain any and all charges on your statement, and help you plan the most affordable route forward.

When Do You Need a Redemption Figure?

A redemption figure will be important whenever you are planning to change, settle, or close your mortgage. As we’ve highlighted above, the mortgage redemption statement will provide you a clear, date-specific total that covers your remaining balance, interest, and any fees.

Most people will only come across this document during a ‘big financial decision’, which is why taking the time to plan ahead and understand when you need one can save you both time and stress in the future.

Let’s take a look at the main reasons why you might need a mortgage redemption statement and figure:

Selling your home

When you sell a property, your solicitor will need to know exactly how much of the sale proceeds must go toward clearing your mortgage. This is essentially establishing your equity in the property sale. As such, your redemption figure will confirm the exact amount due on the day of completion, including any daily interest that builds up before the sale goes through.

In a quick example, should your property sell for £200,000 and your total redemption figure equal £130,000. Then, you will have paid off your mortgage debt with £70,000 left over (£200,000 – £130,000 = £70,000).

Without an accurate figure and confirmation that your mortgage will be settled correctly, the sale cannot be completed, and there is a chance your solicitor may need to request an updated statement if completion dates shift.

Remortgaging

If you are moving to a new mortgage deal with a different lender, they will need to repay your existing mortgage as part of the remortgage process. As such, the redemption figure is what your new chosen lender or solicitor will need to clear the old loan on the day of your new mortgage completion.

In this regard, a mortgage redemption statement can also help show you whether switching is worthwhile. For example, if your current mortgage carries an early repayment charge, this will show on the redemption statement and may influence the timing of your remortgage.

Working with a trusted mortgage broker – like Boon Brokers – can help you find out whether remortgaging is the best option for your circumstances. Our expert mortgage advisers can review your case and provide tailored solutions that will match your needs.

Paying off your mortgage early

In the event that you’re fortunate enough to pay off your mortgage ahead of schedule, then a redemption figure will be crucial. Whether you have savings set aside, received money from a family member, or reached a stage where you simply want to be mortgage free, the mortgage redemption statement provides you with a precise total and any early repayment charges that might apply.

It’s important to note that each redemption document will also provide a “valid until” date. This is particularly useful when you are moving money between accounts or waiting for funds to arrive, as the total amount can change slightly depending on accrued interest.

Divorce or property settlement

Unfortunately, during a separation, a property may need to be sold, transferred to one party, or refinanced. To help with this, solicitors will often request a redemption figure so that they can calculate how much is needed to clear the existing mortgage before the home is divided or transferred.

Working with a defining figure helps everyone understand the financial position of the property and can help avoid any delays during negotiations or court-led settlements.

How Can You Request a Mortgage Redemption Statement?

Getting a mortgage redemption statement is usually a very straightforward process, and you can request one either through your mortgage account or through a solicitor whenever you need to check the cost of clearing your mortgage.

• Log in to Your Online Mortgage Account

Perhaps the easiest way to request a statement is through your online mortgage portal. Most lenders will include a dedicated page or option for a mortgage redemption request, and you can fill in this request with the date you want the figure to cover.

Once submitted, and depending on your chosen lender, the statement will either be generated instantly or emailed to you within a short time. Some lenders may also allow you to download it directly from your account dashboard.

• Request it from Your Solicitor

If you are already working with a solicitor, for example should you be selling your home or completing a remortgage, then your solicitor can request the figure on your behalf.

In this case, lenders will usually send the mortgage redemption statement directly to the solicitor, helping keep the legal side of the transaction running smoothly and ensuring your solicitor always has the latest figure when managing completion dates and money transfers.

Are There Any Fees or Charges in a Mortgage Redemption Statement?

While requesting a  mortgage redemption statement requires no fee, the document itself will show you a complete picture of any fees or charges that may apply if you plan to repay your loan early, switch lenders, or sell your home.

Here are the main fees and charges you are likely to see on a redemption statement:

• Early Repayment Charges (ERCs): Fees that your lender applies for leaving a fixed or discounted mortgage deal before the agreed term ends are called early repayment charges. These will be visible and calculated on your mortgage redemptions statement.
• Mortgage Exit or Administration Fees: Some lenders may charge mortgage exit fees, and these are different from ERC’s. Mortgage exit fees are used to cover the costs of closing the mortgage account and processing the legal paperwork.
• Accrued Interest: Any interest that your mortgage has accrued will be clearly visible and added to the total redemption figure, in line with your redemption date.
• Other Possible Charges: In addition to the usual suspects, some lenders will also include fees for missed payments, arrears, or account adjustments, all of which will be visible on the mortgage redemption statement.

Knowing what fees you might be charged in advance can help you plan your repayment or remortgage more effectively. It ensures you are not caught off guard by additional costs and makes the process of clearing your mortgage smoother, whether handled independently or through a solicitor.

At Boon Brokers, our dedicated mortgage advisers are on hand to help you with any and all of your mortgage questions. Whether you’re unsure about your mortgage redemption document or want to explore more remortgage options to find the best deal that matches your tailored needs, our experts are here to help.

How Long Is a Mortgage Redemption Figure Valid?

A mortgage redemption statement will only be accurate for a limited period, and this date will be included explicitly when you receive your documentation. This is because lenders will calculate all expenses up until the documents listed date. Beyond this, interest will continue to build daily, and any movement in the redemption date will inevitably change the final amount owed.

It is one of the most common questions that our mortgage advisers ask is: “How long does a mortgage redemption statement take?”

Answer: While the document itself can usually be requested and issued quickly, the time period in which the document remains valid is completely dependent on the documents date.

Some lenders keep their figures valid for a couple of weeks, while others may offer a shorter window. If your completion date is delayed or if you do not redeem within the timeframe shown on the statement, you may need to request an updated version.

In short: It’s essentially that you ensure that your mortgage redemption figure is accurate at the time of your repayment.

Can a Mortgage Broker Help You Get a Redemption Statement?

While a mortgage broker cannot directly request a mortgage redemption statement, they can strip away the jargon and help you understand all the information you need. With so many different figures, fees, and interest rates that may apply, it comes with no surprise that many homeowners are left confused about the final figure and what’s left to pay.

Here’s where a trusted mortgage broker – like Boon Brokers – can help you.

At Boon Brokers, we are a fee‑free, whole‑of‑market broker, and our dedicated experts can help you compare all of your options across the entire market to secure the most suitable remortgage deal.

We take the time to listen to your needs, whether you require help understanding rates, interest, and final figures to early repayments charges and remortgage deals. Our impartial advice ensures you can help secure long‑term savings with confidence, knowing you’re supported by a trusted broker who is committed to finding you the mortgage that matches your needs.

Contact Boon Brokers today and benefit from fee‑free, whole‑of‑market advice that puts your interests first.