When does the mortgage gets repaid after house sale?

ginvzt

I asked this question on mortgage forum, but maybe you could help with answer aswell.

Our house was sold (sale completed) yesterday. The solicitor transfered money into our account (well, what is left after repaying mortgage) and it si shown there. But this morning the mortgage account still shows that we have the full ammount left on it plus the interest for one more day.

Our mortgage is with Nationwide. The question is how soon after solicitor transfering money to BS the mortgage account would show £0 and stop accumulating interest?

Richard_Webster

At the moment Nationwide BS accepts cheques for mortgage redemption (final settlement) so even though they won't get the money and credit it to the account for several days they don't add on any interest as long as the solicitor's cheque is dated with the date of redemption. This should save you being charged for the electronic transfer by your solicitor. So the likelihood is your solicitor put a cheque in the post and it will hit the account in a few days time.

Not many lenders still accept cheques - the former Halifax group do, but they are changing to require electrnic transfer from 1st August.

ginvzt

Just got the solicitor's completion statement - it states clearly that a telegraphic transfer fee for mortgage redemption was taken. So, the money should have been in the account. On the other hand - the amount outstanding with added early redemption fee and mortgage exit fee is higher than the solicitor states under 'mortgage redemption to Nationwide'. Will wait till tomorrow and if money is not in, I think we will need to contact Nationwide...

Oh, solicitor also states: "I have redeemed your mortgage to Nationwide BS and you should ensure that no further payments are made."

SquatNow

Banks are crap at showing payments coming in, it will probably appear later but backdated.

This new "Same day transfer" thing they've been on about only seems to apply to small amount...

ginvzt

SquatNow wrote: »

Banks are crap at showing payments coming in, it will probably appear later but backdated.

This new "Same day transfer" thing they've been on about only seems to apply to small amount...

This is CHAPS payment - it is coming in on the same day and the rest of the money are in the current account already.

veyrongirl

We recently completed our house sale.

Although we did not have a mortgage as such, we had a secured loan. Completion was on Friday. We contacted loan company as the next payment was taken on Monday (too late to cancel) and they confirmed the loan was settled on the Friday and they will refund the last payment.

We also received the balance owing to us within an hour of confirming we would pay for CHAPS transfer.

HTH
Lynn