help - completed but solicitor not paid off old mortgage!

G_M

Must admit when I saw the thread Title and started reading the 1st post I was expecting a few weeks gap since Completion which was causing the concern.

Comletion was last Friday? With a weekend in between?

:rotfl:

devonhil

But they have the funds - they've proved that by paying out 10K of it yesterday. It would have made more sense if the split was the other way round - the 30K mortgage paid and holding on to the extra as they don't know which bank account to pay it into. Surely the mortgage is more important than the extra advance?
If I was moving into another house i would now be homeless - I don't think my new house seller would accept a delay in being paid and let me in! In all my previous mortgages money leaves and arrives on the same day (as it has to for people to surrender their keys). Maybe it's somehow less strict for remortgages as no one is left homeless?
My bank has now admitted that they have a special hotline number to the solicitors (something they previously denied - insisting they had to wait in the same queue as me) so fingers crossed they will get somewhere. I am somewhat resigned to paying two mortgages for the foreseeable future and feeling very grateful I don't have a massive mortgage. For someone with a more average mortgage they would be paying an extra £250/week...

devonhil

Hi G_M - I think I am a bit naive. I didn't realise that remortgaging meant paying two mortgages for even one day. I stand corrected.Next time I will go for a secure loan and pay off the mortgage myself rather than using a solicitor - lesson learnt

davidmcn

G_M wrote: »

Completion was last Friday? With a weekend in between?

No, completion was yesterday, apparently.

davidmcn

devonhil wrote: »

If I was moving into another house i would now be homeless

No, payment to the seller is made on the day of completion. But their redemption of their existing mortgage account can only take place after they receive funds - and if completion doesn't take place until later in the day then it probably means redemption will be on the next banking day. Solicitors will account for the possibility of an extra few days' interest in order that they have some leeway for delays.

warby68

Its probably just admin.

They may have even sent a cheque to your old mortgage provider - were you asked how you wanted it settled, CHAPS usually attracts a fee?

When you get the closing statements etc just check the redemption date for your old mortgage was reasonably close to the completion date for your new mortgage. Bear in mind that, to know exactly how much to send you yesterday, the solicitor must have had a precise redemption figure they were working to for your old mortgage. These are usually calculated in advance to allow for the expected date of payment.

Just give things a few days and then complain if it doesn't look right.

devonhil

thank you - I really appreciate your help and explanations with overlapping. I think my main question still remains though -

why only pay out 25% when you have all the funds available and the mortgage is the exact same account you've paid that 25% into?

devonhil

thanks warby68 - didn't realise people still used cheques!

devonhil

thanks everyone for your help. Turns out the bank temporarily 'lost' the 30K due to it 'not being transferred properly'. After a quick 30 minute search they 'found' it again (down the back of their sofa maybe?) and will consider letting me have it tomorrow sometime!