Poor mortgage practice

Ben2013

We're working on a house buy at the moment, and on the day of exchange our lender has changed the mortgage offer and retained £25k of the lending amount - frustrated!
However, the lender when we complete will still be charging the interest rate on the £25k that they aren't handing over - surely they can't do that!!!
Can anyone help?

kingstreet

When you say "retained" presumably you mean a retention has been imposed?

Is there something wrong with the property?

If this is the case, you make up the retention from savings/equity and get whatever repairs are needed done after completion. Once done, you can then request the retention be lifted and have the funds drawndown.

I have never heard of a lender charging interest on a retention. Check.

opinions4u

Have you asked the lender for clarity?

Goldiegirl

Is the retention a surprise? Because they should advise you in writing as part of the offer that money will be retained until certain conditions are fulfilled, e,g, essential works have been carried out.

Also are you SURE they are going to charge interest on money they haven't released yet? Because I've never heard of any lender who would do that