Problem with Mortgage, Solicitor and interest.

DFS

Hi All

I got my 1st mortgage on Friday and am very happy. However, the problem is that I have been charged interest which I think is unfair.

I had to get an adverse credit mortgage and both my mortgage advisor and mortage lender were aware.

My complete date for the purchase was supposed to be Tuesday 10th April. Due to my solicitor querying if the lender knew I was an ex-bankrupt, he did not release the money even though they had recieved the money from the lender on the 5th April.

I have been in my flat now since the 13th April and now been told that I have to pay £350 interest from the 5th to the 19th April even though I never recieved the keys until the 13th.

Should the solicitor of requested and held onto the money when they had further queries??

Am I in my right to ask for that money back from the solicitor as they were gaining interest on it whilst it was in their posession?

maninthestreet

Did your solicitor know you were an ex-bankrupt prior to the mortage lender releasing the funds??

toonfish

you should only pay interest from the day of completion

silvercar

My terms and conditions state that if the money is released early then you pay interest from when it is released.

I don't know why your solicitor requested funds a week early.

When you complete on a mortgage, your solicitor will do work acting for the lender as well as for you; this would be why he felt obliged to ask the lender if they were aware you were ex-bankrupt.

payless

Some solicitors do order the funds up early ( day or 2) if they are dealing with lenders you have caused them delays before , normally I would say 5 days seems high, but in there we have a weekend and 2 bank holidays, so he ordered up the working day before thought was needed (10th)

He could have returned it, but then that might have things slowed up further.

Did you read solicitors standard terms .. its often menetioned in the first pack they send you.

silvercar

Am I in my right to ask for that money back from the solicitor as they were gaining interest on it whilst it was in their posession?

You can ask the solicitor for interest on the money. There is a sliding scale based on the time and amount. If they held over £20,000 for over a week and the interest amounted to more than £20 you can ask for it to be paid to you.

Solicitor ordered the money day before Good Friday incase of a delay

toonfish

also, what about the interest while it's been sitting in the solicitor's client account? Nice bit of profit if he draws down everyones loan a week early.

DFS

The mortgage company was aware of my history, thats why I paid the higher interest. If they were happy to release the money, I assume it would of been obvious to the solicitor that they knew?

So should I write a letter to the solicitor asking for the money refunded to me?

silvercar

To quote myself:

You can ask the solicitor for interest on the money. There is a sliding scale based on the time and amount. If they held over £20,000 for over a week and the interest amounted to more than £20 you can ask for it to be paid to you.

Quote Law society rules part C rule 24!

Your solicitor probably ordered to money on the Thursday thinking it won't actually be transferred before the Tuesday or Wednesday after Easter weekend. If you needed it by Friday that is being ultra cautious!

Law Society rules talk in terms of calender weeks rather than working days, so if he's had it in his client account, earning interest for 8 days your entitled to the interest!

DFS

Is there any chance someone could assist me with drafting up a letter for the solicitor. Writing letters is not my strong suit and I would like to word it at least semi-proffessional.

silvercar

Presuming this demand for interest has come from your mortgage lender, your solicitor will be unaware that you are not happy.

I would phone your solicitor first. Tell him that you have had contact from your mortgage lender, who has said that funds were released to the solicitor on 5th April. Tell him you are puzzled as completion only took place on 13th April. Leave him explain this. We are all assuming that he requested money earlier, there could have been a delay in giving you the keys between 10th and 13th which is nothing to do with the solicitor.

If your solicitor admits to ordering the money over a week in advance, question why this was necessary and tell him you now have a large bill for the mortgage interest in that time. Leave him offer an explaination.

If he has no other explaination other than the easter weekend you could say you are not happy about this as the money could have been requested for weds 11th or thursday 12th, both leaving time to complete on friday 13th. If he offers no further explaination then tell him you will get back to him.

You then have 2 options, either put in a complaint to his practice (all solicitors have complaints procedure) or write to him and ask him for the interest he received while the money was in his client account quoting the relevant rule.

If you ask him for the interest you will not get back as much as you have been charged as he will receive interest at a lower rate than your mortgage.

I really feel you need to give him the opportunity to explain first. Part of the blame for you not getting the keys earlier could be down to the estate agents or builders.