Mortgage not paid off after concluding

saving123

Hi
I moved house over a week ago. However I have discovered that the mortgage for the old house hasn't been paid off by the lawyer. I have spoken to them and been advised that a cheque has been sent to pay it off but in the meantime I am incurring interest and also have had a mortgage payment taken out. Is this standard practice?

AnotherJoe

A cheque? Did your post get delayed and has just arrived from 1986?

No its not standard it should all be done electronically. Ask your solicitor why they didnt pay it electronically same day? You might have a case to claim the interest.

Unless they asked if you wanted to pay extra for a CHAPS or BACS same day transfer and declined?

saving123

No they didn't ask me. Ive had a lot of issues with the solicitor. Thanks for getting back to me. I have asked that the cheque is cancelled and a chaps payment is sent today. Does that seem reasonable?

AnotherJoe

I fear that will cause more confusion when the cheque arrives and the old lender tries to cash it. It must have arrived now so been within a day or two of being cashed so I suspect that might cause a further set of hassle.

Have you spoken to the lender to let them know what's going on ?

glentoran99

Mortgage lender told me it takes ten days for them to process payment and they will refund my latest mortgage payment

saving123

Yes I spoke to them. They advised cancelling the cheque as it's been over a week and they haven't received it. The lawyer posted a cheque to me at the same time and I have just received it after having to go to the post office to pay as they didn't put a stamp on the letter so wondering if they've done the same with other cheque?!

saving123

glentoran99 wrote: »

Mortgage lender told me it takes ten days for them to process payment and they will refund my latest mortgage payment

Thanks did you have the same issue?

glentoran99

Not exactly the same, but I moved on Thursday and a mortgage payment came out on Friday, Phone bank yesterday to check and they said that it takes them up to ten days to process payment but its normal, and that the payment made on Friday would be refunded. Thought it was strange rather than just paying it towards the new account.

AnotherJoe

saving123 wrote: »

Yes I spoke to them. They advised cancelling the cheque as it's been over a week and they haven't received it. The lawyer posted a cheque to me at the same time and I have just received it after having to go to the post office to pay as they didn't put a stamp on the letter so wondering if they've done the same with other cheque?!

Holy moly ! I bet you wont be using them again. I'd say you ahev a case for some small amount of recompense.

Nick_C

But surely if you sold your old home the mortgage had to be paid off on the day of completion so there was no longer any case for a charge on the property?

This sounds peculiar!

davidmcn

Nick_C wrote: »

But surely if you sold your old home the mortgage had to be paid off on the day of completion so there was no longer any case for a charge on the property?

The money doesn't literally have to reach the lender on the day of completion (even if using CHAPS it might need to wait until the next banking day), all that's required is for the solicitor to retain sufficient funds to redeem the account by whatever payment method they're using. Depending on the amounts involved, cheque (even with additional days' interest for postage and clearance) may be cheaper than paying CHAPS charges. Completion by solicitor's cheque is still quite popular in Scotland.