Redemption interest on closing balance of mortgage

Madra

Registered User
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94
I have had a look at a friends closing balance when moving their mortgage from Ulster bank to another bank. It appears that they were charged a'Redemption interest' of €407. Can someone explain the term and what it's for ?
 
It would be interest for the days between when their last normal repayment went through and when the loan was redeemed.
 
When you're closing a sale your solicitor will have asked the bank for the redemption figure (amount needed to end the loan) and your friend would have been told that amount, but until it is actually redeemed (as LD said) that figure may vary somewhat as they can only calculate the actual figure on the day they receive the money and that is the figure on the statement. Your friend has not been charged an 'extra' charge.
 
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