Incorrect mortgage advance (potentially)

HSBristol

With a purchase price of £242,000 and an agreed deposit of £36,500 I was expecting our mortgage advance to the solicitor to be £205,500. However, it was £206,781 which is £205,500 plus the arrangement fee.

Is this correct?

I was not expecting the arrangement fee to go to the solicitor as this reduces the deposit amount we need to pay.

[Deleted User]

It can be added to the mortgage or you can pay it upfront.

Yours has been added to the mortgage. You can repay it if you don't want to pay interest on it.

HSBristol

Thanks for your reply. It has been added onto the mortgage which is fine but I am confused as to why they have sent it to the solicitor.

This means we owe a smaller deposit to the solicitor than agreed

ACG

They've not. It is probably just badly worded.

HSBristol

According to our solicitor's bill, they have transferred the full £206,781

HSBristol

Maybe the solicitor has made a mistake

amnblog

If you have added the arrangement fee, the mortgage company sent 205,500 to the Solicitor but put an opening balance of 206871 on your mortgage account.

If you check the Solicitors statement they may have put the £1,371 fees on the other side of their completion statement to ‘balance’ the figures out.

Bonkers, but there we are.