help - completed but solicitor not paid off old mortgage!

devonhil

Advice would be very welcome.

I have remortgaged my house and added an additional 10K to pay off car loan and credit card. The new mortgage for 40K was 'completed' on October 20th. Solicitor informed me completion was 23rd, and have paid the extra 10K to my old bank but not the 30K original mortgage . My new bank are refusing to help saying the problem is with the solicitor (who they appointed and paid!) but the solicitors don't answer the phone or respond to emails.
Why would a solicitor pay the extra money but not pay off the mortgage? It's all going into the same bank account (the original mortgage was an offset one) so it's not an issue of unknown bank details. Also, can it called completed if the original mortgage has not been settled?
I'm currently paying two mortgages - help!

anselld

Not ideal, but it is one working day - a bit early to panic.
You need to speak to the solicitor.

devonhil

thanks for your reply - they've actually had the money for 3 days though, and they're pretty much impossible to contact. Also, why hold on to some of it when it's all going to the same account? It would make more sense if they'd kept all of it. The part-payment seems odd.

anselld

devonhil wrote: »

thanks for your reply - they've actually had the money for 3 days though, and they're pretty much impossible to contact. Also, why hold on to some of it when it's all going to the same account? It would make more sense if they'd kept all of it. The part-payment seems odd.

Saturday and Sunday are not days in Solicitor/Banking world.
They stated completion scheduled for 23rd.
They have drawn down funds the previous working day in preparation - normal.
The question is why have they not completed today with the £30k.
Only they can explain I'm afraid.
Let us know when you find out.

devonhil

that info about the gap between obtaining the money and paying it out again due to the weekend makes sense - thanks for explaining that.
You're right though - it's the missing mortgage payment which is the puzzle. My bank has promised to phone me this morning so I will update when I know anything.

davidmcn

devonhil wrote: »

that info about the gap between obtaining the money and paying it out again due to the weekend makes sense - thanks for explaining that.

They can't pay it out before completion anyway, so at earliest they could have made the transfer yesterday. And CHAPS transfers need to be prepared well before close of business, so often redemptions will be left until the next day anyway. Enquire if you like, but nothing to worry about.

devonhil

thanks for your reply - it's a steep learning curve! Still bemused by the part-payment though! If completion hasn't occurred (and the solicitor/s online progress report states 100% complete so they seem to believe it has) then surely no money would be passed on?

Comms69

devonhil wrote: »

thanks for your reply - it's a steep learning curve! Still bemused by the part-payment though! If completion hasn't occurred (and the solicitor/s online progress report states 100% complete so they seem to believe it has) then surely no money would be passed on?

Is this a proper solicitor or a conveyancing firm?

davidmcn

devonhil wrote: »

thanks for your reply - it's a steep learning curve! Still bemused by the part-payment though! If completion hasn't occurred (and the solicitor/s online progress report states 100% complete so they seem to believe it has) then surely no money would be passed on?

Completion has occurred, that doesn't mean that all outgoing payments are processed simultaneously. Maybe they helpfully consider it better to get the surplus money to you before the redemption monies go to your old lender.

devonhil

Comms69 - they are solicitors but with a shocking reputation, employed by the bank. I am seriously regretting not just taking out a 10 year loan - slightly higher interest rate but much more straightforward for such a small remortgage. It's taken 3 months so far!
I'm lucky that the amounts are small and so I can afford to pay two mortgages for a week or so (5 days so far) but if they did the same to someone with a larger mortgage the double payments would be crippling! I'm a bit shocked that peoples' money is treated so casually

davidmcn

devonhil wrote: »

I'm lucky that the amounts are small and so I can afford to pay two mortgages for a week or so (5 days so far) but if they did the same to someone with a larger mortgage the double payments would be crippling! I'm a bit shocked that peoples' money is treated so casually

By definition they need to draw down the new loan funds before they can redeem the old mortgage. There's nearly always going to be an overlap of some sort, whether you're remortgaging or moving house. It's all normal and doesn't mean that they're treating your money "casually" at all.