Solicitor ordering mortgage money early

perc

Hi I have a completion date of 15/06/2006 and have just been advised by my mortgage company that my solcitor has order the mortgage monies to be released on 09/06/2006 - so it will obviousley be sitting in their account for 6 days earning interest whilst I have to pay interest on it to the mortgage company.

Is there any thing that I can do to stop and prevent this?

Thanks

Hippychick

Not too sure why they have done this, ask them, they can call your lender cancel the payment and arrange for it to be sent out on the 14th.

We always order mortgage monies one day before completion so that the money is their in time for completion the next day but never 6 days in advance. It's not like you are completing on the Monday!

Unless the only reason i can think is your lender is sending them a cheque and it needs to clear? Although nowadays we never accept cheques if we can help it they have a habit of getting lost!

Bossyboots

Agree with hippychick. Ask them why they have ordered it so far in advance.

If you don't agree with the answer and they insist that is what they are going to do, tell them you want the interest made on it paid to you. There are criteria they could use to wriggle out of paying this but you should push the issue.

perc

Bossyboots wrote:

Agree with hippychick. Ask them why they have ordered it so far in advance.

If you don't agree with the answer and they insist that is what they are going to do, tell them you want the interest made on it paid to you. There are criteria they could use to wriggle out of paying this but you should push the issue.

Hi thanks for this - what is the criteria they could use?

Hippychick

They will say because of Solicitors Accounts Rules they aren't allowed to pay you interest on the mortgage monies (as technically the money still belongs to your mortgage lender until you complete).

The solicitor should be able to cancel the payment, he has a week to stop it being sent! all he has to do is call your lender and then confirm by fax. most lenders will do this.

perc

Hippychick wrote:

They will say because of Solicitors Accounts Rules they aren't allowed to pay you interest on the mortgage monies (as technically the money still belongs to your mortgage lender until you complete).

The solicitor should be able to cancel the payment, he has a week to stop it being sent! all he has to do is call your lender and then confirm by fax. most lenders will do this.

Do I have no control over when this is paid then? Can I not cancel myself?

Hippychick

No your Solicitor would have had to send them a Certificate of title, this certificate certifies to your lender that the property title is good security for them to lend on, it is on this form that they request the funds, they have to write the date they need the money by together with their accounts details.

Have a word with your Solicitor on Monday, if they refuse to cancel it then write and complain and try and get your solicitor to pay you back the interest that you will have to pay. At the end of the day it's their fault.

perc

I will speak to them on Monday and let you know how i get on! Thanks again

Joe_Bloggs

My solicitor paid my deposit cheque into his accountants accounts. After this everything was done via the CHAPS system and all went like clockwork.
The ninth of June is a Friday and who on these MSE forums tries to move money on a Friday ? Almost Everybody loses interest over the weekend in my view in this situation! Who gains what we lose ?
J_B.

Keith

perc wrote:

Hi I have a completion date of 15/06/2006 and have just been advised by my mortgage company that my solcitor has order the mortgage monies to be released on 09/06/2006

This is common, my work order the money a week before to make sure it is paid in the day before completion, it doesn't mean its released to them on the 9th, its simply a Money Order for the money to be sent to them on the 14th.

The bank will confirm in writing the request, and the money will arrive with your solicitor the day before completion.