Has solicitor got our mortgage money?

set

Hi Everyone

Hope you can help. We signed contracts yesterday, seller wants to complete 17th Aug. We received a letter this morning from solicitor with a completion statement asking us to pay by 16th the balance of their bill etc. In the completion statement is say under recepts all the money we have paid to them so far, cashback from mortgage company (we're using that to go towards their bill) also says Mortgage Avance, the full amount of what we are borrowing. So does that mean the solicitor already has our mortgage money?

Thank you 😊

glentoran99

they may or may not have already drawn down the money but they will have got the redemption details from the bank

set

Thank you, we are FTB so haven't done this before. Just wondered really, thought it was day before we got keys but just seeing it as a receipt on completion statement made me wonder. Thanks for the reply ��

Thrugelmir

You'll be charged interest from the date funds are drawn down. So no, the solicitor won't be holding the funds. You say you signed contracts yesterday. More importantly was contract exchange effected.

set

Thrugelmir wrote: »

You'll be charged interest from the date funds are drawn down. So no, the solicitor won't be holding the funds. You say you signed contracts yesterday. More importantly was contract exchange effected.

Thanks for your reply. Erm, I'm sorry, effected by what? FTB and have no idea

Lilla_D

Thrugelmir just meant to ask whether the exchange of contracts happened (as in, came into effect). Signing the contracts (which means that you sign the necessary paperwork and send it to your solicitor) is one thing, but "exchanging contracts" (i.e. the two solicitors literally send their clients' signed paperwork to the other party's solicitor to make the purchase legally binding) is another. So the question is whether the exchange of contracts happened or not.

Either way (i.e. whether you exchanged contracts or it's scheduled to happen simultaneously with the completion), the solicitor will likely ask for the mortgage funds to reach their account the day before completion. This is because the mortgage interest is charged from the day of the drawdown (as mentioned above), but at the same time the solicitor wouldn't want to risk getting the funds on the day of completion just in case there's a technical glitch or something.

Maybe too much information, but the solicitors have to send the money back to the lender, if completion doesn't happen for some reason within a few days of getting the mortgage funds, so they would definitely not have got the money at the time of sending you the settlement statement this week.

set

Thank you for that. All makes sense now thank you