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A redemption statement is a document from your current mortgage lender showing exactly how much you need to pay to close your mortgage account completely on a specific date. It’s the figure your solicitor uses on completion day to pay off your existing lender when you remortgage, and it’s more precise than your regular mortgage statement, because it accounts for interest up to that exact day.
Without a correct redemption statement, your solicitor can’t complete your remortgage, since paying the wrong amount could leave your old mortgage partly outstanding or overpay unnecessarily.
What does a redemption statement show?
A typical redemption statement sets out:
- the outstanding capital balance on your mortgage
- interest accrued up to the redemption date
- any early repayment charge that applies if you’re leaving your deal before the end of its term
- any exit or administration fees your lender charges to close the account
- any arrears balance, if your mortgage isn’t fully up to date
- the final total needed to redeem the mortgage in full on that date
| Item | Typically included? |
|---|---|
| Outstanding capital | Always |
| Interest to redemption date | Always |
| Early repayment charge | If applicable to your current deal |
| Exit or admin fee | Often, check your original mortgage offer |
| Mortgage arrears balance | Yes, if applicable |
| Overpayment credit | Sometimes shown separately if you’ve overpaid |
How do you get a redemption statement?
Your solicitor normally requests this directly from your current lender once your remortgage is underway, so you don’t usually need to ask for it yourself. If you want an early idea of costs before deciding whether to remortgage, most lenders will provide a redemption quote on request, by phone or through your online mortgage account. This can be useful when weighing up a remortgage against a product transfer with your existing lender, since a product transfer often avoids the need to redeem the loan at all.
Why does the date matter so much?
Interest builds up daily on most mortgages, so a redemption figure calculated for one date won’t be exactly right a few weeks later. If your completion date changes, for example because of a delay in the legal work or because a lender needs more time to underwrite an adverse credit file, your solicitor will usually need to request an updated statement closer to the new date. This is a normal part of the process and rarely causes a problem, provided everyone allows enough time.
Does it include an early repayment charge?
If your current deal still has time left to run, it may include an early repayment charge (ERC) for leaving early. This can be shown as a separate line on the redemption statement or built into the total. It’s worth checking this figure carefully and comparing it against the potential savings or benefits of remortgaging now versus waiting until your deal ends. Our guide on early repayment charges explained covers how these are usually calculated and when they taper off.
What if you have mortgage arrears?
If you’ve had mortgage arrears, your redemption statement should include the arrears balance as well as the main outstanding capital, so the account is closed in full rather than leaving a shortfall. It’s sensible to check this figure against your own most recent statement, and to ask your current lender directly if anything looks unclear, particularly if you’ve been on a payment arrangement.
What if you have a CCJ or charging order to clear?
A redemption statement only covers what’s owed on the mortgage itself. If you also have an unsatisfied CCJ or a charging order that a lender requires you to clear as part of completing the remortgage, that’s usually calculated and paid separately, alongside the redemption figure, on the same completion day.
What does this mean if you’re remortgaging with bad credit?
The redemption statement itself works the same way regardless of your credit history, but adverse credit cases sometimes take longer to reach completion, which means the statement may need refreshing more than once if the timeline stretches. If your case involves a CCJ, defaults or arrears that a lender wants cleared on completion, it’s worth asking your adviser or solicitor early how the redemption figure and any extra amounts will be combined, so there are no surprises on the day.
If you’re unsure what a figure on your redemption statement means, or you think it doesn’t match your own records, ask your current lender to explain it in writing before your solicitor uses it. Free, impartial guidance on mortgage costs generally is also available from MoneyHelper if you’d like a second opinion.
What if the figure looks wrong?
It’s worth checking your redemption statement against your own mortgage records before your solicitor relies on it, particularly if you’ve had a payment arrangement, a period of arrears, or made overpayments that don’t seem to be reflected. Mistakes are uncommon but not impossible, especially where an account has had a complicated payment history. If something looks off, query it directly with your lender in writing, and ask for a corrected statement before completion goes ahead, rather than after funds have already moved.
How does a redemption statement differ from your annual mortgage statement?
Your annual statement gives a general summary of your mortgage over the previous year, including payments made and interest charged, but it isn’t calculated for a specific redemption date and shouldn’t be used to work out exactly what’s needed to pay off your mortgage. A redemption statement is more precise, calculated for one exact date, and is the only figure your solicitor should rely on for completion. If you want a rough idea of your position before committing to a remortgage, our bad credit remortgage calculator can help with a broad estimate, though it won’t replace an official redemption statement from your lender.
Frequently asked questions
Who requests the redemption statement?
Usually your solicitor, once your remortgage is progressing, requests it directly from your current lender. You can also ask your lender for one yourself at any point, for example to get an early idea of the total cost involved before deciding whether to remortgage at all.
Does a redemption statement expire?
Yes. Because interest builds up daily, a redemption figure is only accurate for the specific date it was calculated for, sometimes with a short window either side. If completion is delayed for any reason, your solicitor will usually need to request an updated statement from your lender before proceeding.
Will my redemption statement show an early repayment charge?
If one applies, yes. Some lenders show it as a separate line, others build it into the total figure. Check whether an early repayment charge applies to your current deal before you commit to remortgaging. See early repayment charges explained.
Does the redemption statement include mortgage arrears?
It should, if you have any. The figure is meant to reflect the full amount needed to close the account, including any arrears balance and fees, not just the remaining capital. Always check this against your own records if you've had mortgage arrears.