I am selling my house, I was provided in December with a mortgage release figure of 147k. However as it is offset they said I would have to phone back on the completion day for a new figure.
My solicitors contacted yesterday and were told the redemption figure was now £176k!
When we looked into it they are trying to lump into the redemption my old loan and overdraft. the loan is outstanding for 27.5k and the overdraft was 1050. These debts are with their debt recovery team.
Speaking to the offset mortgage department in order to pay off my mortgage I simply pay the 147k.
Now the solicitor asked them why this was to be included and they were told that the overdraft was on an offset account and my loan was part of the offset accounts?
As far as I am aware no loan other than one that is included in a mortgage increase can be included, and it would need to be entered into the registry if it was secured on the property as a secure loan.
Also although my current account was included in the offset accounts, the loan account was never included (otherwise it would appear on the offset statements), and the RBS website states you can only add current and savings accounts! The loan was also taken out before I even had an offset mortgage, so it is not even as though they can claim that it was taken after that!
Anybody had similar problems, or know what the issues are here? Is there anyway I can simply pay them the mortgage amount and that would release it?
The house is only selling at 157.5k so no way they can expect to get the money anyway? Plus there is an existing charge which means no money will be coming out anyway.