Pointless?

GemBlueTopaz1984

Hi all,

Just looking to see if this is normal practice because it seems pointless to me. We have almost completed on our first remortgage, we have gone with Tescos and we complete on Wednesday 21st, I have just received a statement from the solicitors stating that Tescos have sent them £89,300 and that we will be sent a cheque for £1356.19 as this is what is left after the mortgage with natwest is cleared, Now when we applied for the mortgage we applied for £88,000 and selected to also add the £1300 booking fee to the mortgage, clearly Tescos have sent the solicitors the whole amount for the solicitors to send the balance to us for us to then send the booking fee back to Tescos (although we haven't had anything tell us that I'm sure a letter will be on its way). Is this not completely pointless? I expected Tescos to just keep 1300 and send £88,000 to the solicitors or Is this the normal way this is done.

Thanks

Gem

ACG

What was the redemption figure from natwest?
Have you had a statement from the solciitors with a breakdown yet?

Thrugelmir

GemBlueTopaz1984 wrote: »

I expected Tescos to just keep 1300 and send £88,000 to the solicitors

Clerical oversight I would say.

GemBlueTopaz1984

Hi,

Thanks for the replies, our statement says that the redemption figure from natwest is £87,943.81, Tescos have sent the solicitors £89,300 so the solicitors have written to us stating that after completion they will be sending us a check for £1,356.19, so the £1300 booking fee is being sent to us, so I assume Tescos will contact us asking for payment of the booking fee but this just seems pointless, why didn't they just keep the 1300 and send £88,000 to the solicitors to save us the task of paying it back to them

Thrugelmir

I would suggest that you ask the solicitors to return the £1,300 directly to Tesco's and just close the matter.

GemBlueTopaz1984

Thanks for the advice, I will drop them an email asking them to do that.

Jhoney_2

I appreciate that it sounds silly, but I assume they have to make sure there is not a debt that has a claim on that money before you can go spending it with Tescos e.g for the booking fee.

That is something that your solicitor is supposed to address - hence the money goes there. They cannot just keep it as it is separate to the mortgage (e.g 1st charge) and somewhat down the list of 'disbursements'.

Makes perfect sense to me.

Your solicitor - once satisfied there is no other priority claim to these funds, will send the monies due to Tesco's as requested.

GemBlueTopaz1984

Thanks, so is this normal because if I didn't contact my solicitors they have made it sound like they would have just sent the money to us. I was just wondering if this is how the booking fee is always dealt with when it is added to the mortgage. Or normal for Tescos because the couple of people I have spoken to who added the booking fee can't remember doing anything with it they don't remember being sent it to send back to the mortgage lender or having to request the solicitor send it back, that it was always just dealt with as part of the process, I can only assume this is an error. Hopefully this can all get sorted before completion so it doesn't cause any issues.

Thanks for all the replies