Remortgage - 2x overlap and SVR overpaid

proformance

Hi all 

I'd like some advice. The story is quite complicated, so I'll try to keep it the most salient. 


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TLDR - as part of my recent remortgage, it was discovered that Lender B's (the new lender's) solicitors had sent the redemption funds to an INCORRECT bank account, and thus, did not successfully redeem Lender A (the old lender) for 8 days after the time which the new mortgage with Lender B begun - resulting in me (the borrower) with 2 concurrent mortgages, incurring ~£1.5k on SVR with Lender A, all the while paying interest with new lender (Lender . 

As you could probably guess, BOTH Lender B and Lender B's appointed solicitors are denying responsibility. Read on for the detail. 
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I recently remortgaged from Lender A (old lender) to Lender B (new lender), via a broker. 

We were targeting completion on 4th Aprl.

We received written confirmation from Lender B's solicitors confirming successful  completion on this date (in these words). Sounds good so far. 

However, on 8th April (4 days after the completion), I called Lender A (the old lender) to check when I could expect to receive the "closing statement" letter. To my surprise, Lender A explained that the account was still very much open, and no funds had been received.

I immediately called Lender B and Lender B B's solicitors to enquire as to why.

Long story short, Lender A didn't receive the redemption funds until 12th April - 8 days on since we told that we had completed, during which time we were paying interest at SVR (7.34%) with Lender A, as well as interest with Lender B (where this mortgage started on the date of completion - 4th April) , concurrently. 

Lender B told me it was nothing to do with them and that I should and can only have this investigated by their appointed ("fee free"). 

I raised a formal complaint with Lender B's solicitors. On the 10th day of their investigation (26 Apr), they responded with an email that concluded that they could find no wrongdoing on their part. They claimed that they DID transfer the funds (via CHAPS) on 4th April and that the funds were "bounced back" immediately, this in their view, completion was achieved. 

Thankfully, they also provided a CHAPS record of the funds that they had allegedly sent (but not a record of the funds subsequently received). Upon inspecting the CHAPS receipt I saw that Lender B's solicitor entered an incorrect account number to that of Lender A's payment instructions as set out in their redemption statement (and their website). 

So now, and seemingly only now, it is clear that the 8 day delay was caused because of Lender B's getting a digit wrong in the beneficiary's (Lender A's) bank account number. 

I responded, armed with this new information thinking that there was NO WAY they could get out of it now. Had them by the short and curlies, or so I thought. 

To my dismay, they then responded and said that while the account number was entered incorrectly, it is the fault of their own issuing bank + the CHAPS network as to why it took so long for them to resurface the funds.

Their advised that I could open a complaint with the solicitor's issuing bank and ask them why it took so long. 

Deflated, I called Lender B and apprised them of their solicitor's mistake, but they there wasn't much they could do as it is between myself and the solicitors (even thought they're not acting for me!), and said all they could do on their side was to raise a dispute and have them reviewed. 

Can anyone advise what my next step might be? 

Sorry for the long reply and I realised I definitely didn't cut a long story short. 

Z

silvercar

Sounds like they have admitted it was their mistake in using the wrong account number. Everything subsequently is nothing to do with you. They made the initial mistake and they should pay for the loss you have suffered. If they want to make a claim for how long it took to be noticed and returned to mitigate their losses then they can. 

I would ask them for their formal complaint procedure and you should then follow it. If you aren’t satisfied with the result then you could take it to the banking legal ombudsman.

would be worth quantifying your losses to be clear on what compensation you want. I’m calculating it as 0.16% of the amount involved. (8 days out of 365 at 7.34%)

proformance

silvercar said:

Sounds like they have admitted it was their mistake in using the wrong account number. Everything subsequently is nothing to do with you. They made the initial mistake and they should pay for the loss you have suffered. If they want to make a claim for how long it took to be noticed and returned to mitigate their losses then they can. 

I would ask them for their formal complaint procedure and you should then follow it. If you aren’t satisfied with the result than you could take it to the banking ombudsman.

would be worth quantifying your losses to be clear on what compensation you want. I’m calculating it as 0.16% of the amount involved. (8 days out of 365 at 7.34%)

It's irrefutably their mistake, but they're refusing to compensate notwithstanding it.

Does anyone know roughly what the process with the Financial Ombudsman looks like? 

Edi81

It’s not the financial ombudsman that you need to complain to. 

You need to follow the full complaints procedure for the solicitors. 

silvercar

Edi81 said:

It’s not the financial ombudsman that you need to complain to. 

You need to follow the full complaints procedure for the solicitors. 

EDI is right, I made a mistake.  I would write a short letter stating they made a mistake, your losses are X and ask for details of their complaints procedure. You could add that failure to be put in the position that you would have been had their mistake not be made will mean that you will go to the legal ombudsman. Even a whiff of a complaint to the solicitor’s professional indemnity insurance and their premium will go up massively more than this error would cost them.

proformance

Thanks for the replies all.

What I described above WAS their(the solicitor's) formal response to the formal complaint that we raised.

They are saying that they admit to the clerical error, but are blaming their bank for not alerting them in a timely fashion and this is a "CHAPS standard procedure", and that I would need to speak to them about why it takes so long. 

They are also saying that they were not acting for us, but acting on behalf of their client (Lender and therefore we are not entitled to make any complaints with them, nor claim and compensation through them. 

However, Lender B tells us that it is not their responsibility either, and pushes us back to speak to the appointed solicitors. The circle continues. 

Not sure where to turn here.. 

silvercar

I would argue that they were acting on your behalf and that of the lenders. After all, they were registering the charge on YOUR property for the new lender - a charge that you were consenting to and ensuring the old charge was removed. This latter part is definitely on your behalf. Ask them for a final response and then go to the ombudsman.

penners324

Why are there 2 solicitors firms for 1 remortgage? Usually it would be the 1 you appoint (though the new mortgage company might steer you to the solicitor they want).

Make a complaint to the solicitors used, it's their fault

proformance

https://forums.moneysavingexpert.com/discussion/comment/80026114#Comment_80026114

There aren't two. There's one.

proformance

Still seeking advice, but I bring positive updates.

Having digested the evidence I sent back, they (the new lender's solicitors) responsed: "while we don't agree to the facts that you have provided, we agree to reimburse funds to you for the period for which you were charged SVR with the old lender".

It goes on, but in a nutshell they're agreeing to reimburse me, but for 7 days, not he requested 8 days. 

Their argument is that Lender A (the older lender) confirmed to the solicitors that they did receive the funds on the day that they were sent, but it takes 1-3 days to process. 

Im a lot more comfortable bow, but still think the solicitors should only ever confirm "completion" regarding a remortgage when (and only when) the old/current lender is "redeemed"; that is to say they have received the funds set out in their redemption statement 

Similarly, it makes me wonder if (again, pertaining to remortgages specifically) the target date that you specify can EVER be honoured if all lender's bank accounts can take up up to 3 days to receive/locate and process funds? 

For example ic, if the solicitors were targeting 1 Apr as the date in which they would transfer the redemption funds, the most likely best realistic scenario is redemption happening on 2 Apr?