Remortgaging - paid double interest for 4 days

beefturnmail

For any one who cares: I have checked and actually the solicitors in question were NOT acting for me in this remortgage (it's clear as day in the first letter I got from them that they act only for the lender).

Therefore I will take this up with the lender with the following strategy: The lender began lending me money on the 2nd October when the remortgage completed, so that's when I pay interest from, not the 28th September. The fact that on the 28th September they transferred the money to a sollicitors account is irrelevant as the solictors were acting only for the lender, not me.

Will re-post to say how this gets on. Thanks all again for responses.

GMS

You have opted for free legals which presumably you thought would save you a few quid. As you have now found out free means bad. You had no legal representation in this transaction as the only action from the 'solicitors' was for the lender's behalf.

You will probably find that the lender states in their terms and conditions that they require 3 days notice for funds to be in place. As soon as they release them then they will be allocated and charged for.

A decent solicitor acting on your behalf would not have allowed this to happen and done what you said, i.e requested the funds for the day of completion only. If it were a purchase they may have done it the day before to ensure no delays but yours was not.

The lender will have clauses galore to justify what they did and you have no recourse to the solicitor as you didn't employ them.

I hope you get your resolution but you may well need to chalk this down to experience and move on.

beefturnmail

Thanks. We'll see just what these clauses are and whether the lender backs down just to shut me up.

beefturnmail

Well all it took was a phone call and one letter to the lender and I have today received the e-mail below - It appears that LMS do not agree that it is 'standard practice' either.

<Lender> have forwarded us your letter advising of your dissatisfaction with the level of service you received from <solicitor>. LMS is responsible for allocating this law firm to undertake your conveyancing transaction on behalf of <Lender>.

I understand that your complaint is regarding the early draw down of funds on your transaction and the increased interest applied.

I have found that the law firm did in fact draw funds Friday 28.09 this being 24 working hours before your set completion date of 01.10. However as the shortfall was not received in sufficient time funds could not be transferred until the 02.10. This has been reimbursed by the law firm as they have not adhered to LMS guidelines, in respect of completions requested on the 1st of the month.

I understand your new daily interest with <lender> is £xxx per day x 4 days £yyy. Therefore I have asked the law firm to refund you £yyy, this being for the increases interest applied to your account for the four days, which I believe to be fair and reasonable given the circumstances.

I have arranged for a cheque to be sent to you immediately and I would offer my sincere apologies for any inconvenience caused. If you have any further questions, please do not hesitate to contact me. I have attached a copy of our complaints procedure should you remain dissatisfied with my findings.

sammyjammy

Well done you for being so tenacious, I'm so lazy I probably wouldn't have done anything, not very MSE am I! LOL

kingstreet

beefturnmail wrote: »

However as the shortfall was not received in sufficient time funds could not be transferred until the 02.10

Shortfall? What shortfall?

beefturnmail

kingstreet wrote: »

Shortfall? What shortfall?

There was a shortfall of £2k between the old and new mortgage which I made up. This I transferred to the solicitor via fps at 10am on the 1/10 which should have been sufficient time for completion on the same day - all this was as I was told to do by the solicitor (who wouldn't tell me how much to transfer or their bank details until the morning of 1/10).

It's somewhat irrelevant anyway, as even if completion had occured on the 1/10 - I would still have argued that I shouldn't pay 3 days double interest

kingstreet

Hm. I was curious.

Solicitor firm sounds like it's staffed by clowns. Good job you got LMS to sort it out.

Never really liked them, TBH.

beefturnmail

Yes it was the fault of the solicitor I believe. The lender has actually acted OK, but it was clearly more expedient to complain to the lender direct, and at the end of the day it is they who choose the conveyancer.

Won't be user this solicitor to act for me in any future purchase or sale!