New mortgage paid but not completed yet

Dan-_5

My solicitor was planing on exchange and completion last month so drawn Down mortgage funds,
1 month Down the line still not exchanged and have just been charged my first mortgage and a half payment for my new house.
Has anybody else experienced this and will my original mortgage still be charged which is due next week

kiddakidda

Iv'e never heard of this, what was the reason that the completion didn't take place?

Your solicitor should have informed the lender if it didn't complete and returned the funds.

Have you exchanged?

Dan-_5

At the time we was still waiting for enquires and we are still yet to exchange waiting on indemnity for building regs

kingstreet

Your solicitor should have returned the money to the lender when completion didn't take place.

Ask them to justify their action.

kiddakidda

Dan- wrote: »

At the time we was still waiting for enquires and we are still yet to exchange waiting on indemnity for building regs

As Kingstreet has mentioned, your solicitor needs to tell you why the funds were not returned. Your lender may have recorded this as a completed sale hence why the first month and a half payment was taken.

You need your solicitor to put this right and get you your months payment back on a mortgage that doesn't exist.

Senior_Paper_Monitor

All lenders that I know have very strict rules on maximum time that drawdown funds can be held without completion - and it doesn't involve weeks or months !!




.... and no solicitor should knowingly draw down funds when "waiting for enquires and we are still yet to exchange waiting on indemnity for building regs".


Something very wrong here !!

ACG

Im just going to echo the above, if the mortgage did not complete within a week (give or take depending on lender) the money should have been returned.

I wouldnt expect you to be out of pocket here as the solicitor has messed up.

Thrugelmir

Dan- wrote: »

will my original mortgage still be charged which is due next week

If the mortgage has not been redeemed then yes.

Speak to your conveyancer on Monday morning.

GMS

Your conveyancer needs reporting.

Shocking behaviour. Probably end up on the lender naughty list too. rightly so.

Goldiegirl

When I worked at the Halifax this sort of situation happened quite often.

As far as the Halifax is concerned, the money has been advanced on the date of completion advised to them by the solicitor. Therefore any monthly payment is due in line with the completion date. As it stands at present, your monthly payment will be due next week

However, sometimes the solcitor advised us of a new completion date. So we'd enter the completion date on our records, and recalculate the interest. If it turned out the customer had overpaid, they'd be refunded, or the next payment would be reduced.

This was the Halifax way, up until 5 years ago.

Your lender may be different, but this situation is not unusual, do ask your lender how they deal with this.

But it was rare for a delayed completion to be weeks.... Normally, if the solictor is doing his job it's a few days

kingstreet

I'm going to guess at Barclays/Woolwich as failed completion and return of funds means a new application if completion doesn't take place within thirty days of the COT date.

I forget the exact details but it was from a post on here a month or two ago.