What is the purpose of obtaining a redemption statement after exchange/before completion?

• A. To determine the amount required to redeem the mortgage
• B. To arrange a new loan
• C. To check the property's insurance
• D. To register the discharge with Land Registry

Answer: (A)

The essential idea here is that a redemption statement tells you the exact sum needed to redeem (pay off) the existing mortgage on the property on the day of completion. It comes from the lender and sets out the current outstanding balance, any accrued interest up to a specified date, and any early repayment charges or fees. This figure is crucial for the buyer’s funds planning and ensures the mortgage can be cleared on completion so the property can be transferred free of the lender’s charge. It isn’t about arranging a new loan, checking insurance, or registering the discharge with Land Registry—those are separate tasks that occur in different parts of the process.