Remortgage misery

sammyjammy

Apologies for my rant!

I'm supposed to complete on my new mortgage with haifax today after my fixed rate ended yesterday. I'm SO cross, just got a call from the solicitor to say that because my last payment to Abbey only came out on Tuesday (as it should) it will take ten days to clear so if I want to complete today I need to let them have nearly £700!! I don't have this money so queried it, the explanation is that the payment made to Abbey will take ten days to clear.

The only option is for me to complete in 12/3 days time to ensure the money has cleared and spend that time on Abbeys SVR which means I also have to pay an extra £200 odd.

Has this happened to anyone else, I'm really livid, is this really 2007 where a DD takes ten working days to clear and why didn't someone think of this before now, I despair!

Sam

Gorgeous_George

Hi Sam

Sounds like a con and maybe something Martin should look at. How big is your mortgage and what are the IRs of the SVR and new deal?



GG

sammyjammy

Hi GG

SVR for Abbey is currently 7.84% and new rate is 5.89% with Halifax, it does feel like a con but I guess we've got used to the big banks ripping us off, I know its only a couple of weeks but its £200+ out of the budget:(

dunstonh

The solicitor is causing the problem here. Not Abbey.

The solicitor will have a redemption value and he should work by that regardless of your payments. Abbey will refund any payment made outside of that redemption figure. It can mean you wait two weeks to get the direct debit back but thats the nature of the systems.

I have never known a solicitor to hold up redemption because of a direct debit payment.

jill2002

I agree, the solicitor should have told you not to pay any more direct debits when the completion date was known. The redemption figure from Abbey would not have included the fact that they will receive this amount by direct debit.

The solicitor would have requested the redemption amount for a certain date a few weeks ago and therefore would have known the completion date at that stage and also the fact that they would not include any further monies paid.

Jill

sammyjammy

Hi,

Thats the thing the redemption figure does include that payment its just that the DD only came out two days before completion due so they have to wait for it to clear, the only other thing was for me to pay the £600+ and then get it refunded after DD cleared with Abbey, unfortunately I cannot get my hands on over £600 certainly not within the hours deadline they wanted it!

Maybe it is right its just I've never come across it before and I've had fixed rates move over to new mortgages three times now.

I wonder if you can answer a question, if the Halifax mortgage now starts 2 weeks later does that mean the first payment will be less? They've already said DD will come out 1st of the month so I'm guessing two weeks less interest in that payment......

Sam

jill2002

Sam,

Yes your right, the payment will be less two weeks interest.

Is your new mortgage with the Halifax not for the amount of the redemption figure? If it is, then yes you are out of pocket to the tune of £600 until it is refunded. But remember you are likely to miss a month's mortgage payment during the transfer, however, the first payment will be larger than normal as it will include more than a month's interest, but you will have got the £600 refund by then.

Jill