Completion Money Lost From Mortgage Lender

kingstreet

GDB2222 said:

kingstreet said:

dteezle said:

kingstreet said:

If you try to enter inactive solicitor details in the Santander system, it rejects them and you have to establish the correct details before being able to proceed. If Santander has acceptable details in its system and those were the details on the reservation or memorandum of sale, the application would be "submittable."

How do you know this is the case? So even previously valid details would be not pass this check? Do you think it's therefore more likely solicitor's bank that has it but failed to route it?

I've been doing this for a living for 40 years in August. Lenders are expected to keep their solicitor panels up to date. It's an FCA requirement. If the broker can use out of date details, that isn't the broker's fault as they shouldn't be available on the Santander system. In addition, surely the mortgage offer would have gone to the wrong solicitor/branch if there was such an error. Sorry, I'm not going to speculate on where the funds might have gone. Only Santander has the sort code and account number to which it sent the money.

I take it that this sort of thing doesn't happen often?  

I'm hopeful that someone's PI insurance will eventually pick up the tab for this, rather than the OP's mum, but it must be pretty worrying. 


. 

No. I've heard of money getting stuck in AML checks for days but I thought the lender/solicitor COT and banking process was pretty robust.

dteezle

kingstreet said:

dteezle said:

kingstreet said:

If you try to enter inactive solicitor details in the Santander system, it rejects them and you have to establish the correct details before being able to proceed. If Santander has acceptable details in its system and those were the details on the reservation or memorandum of sale, the application would be "submittable."

How do you know this is the case? So even previously valid details would be not pass this check? Do you think it's therefore more likely solicitor's bank that has it but failed to route it?

I've been doing this for a living for 40 years in August. Lenders are expected to keep their solicitor panels up to date. It's an FCA requirement. If the broker can use out of date details, that isn't the broker's fault as they shouldn't be available on the Santander system. In addition, surely the mortgage offer would have gone to the wrong solicitor/branch if there was such an error. Sorry, I'm not going to speculate on where the funds might have gone. Only Santander has the sort code and account number to which it sent the money.

Thanks very much for the response, all very useful information

EssexHebridean

kingstreet said:

GDB2222 said:

kingstreet said:

dteezle said:

kingstreet said:

If you try to enter inactive solicitor details in the Santander system, it rejects them and you have to establish the correct details before being able to proceed. If Santander has acceptable details in its system and those were the details on the reservation or memorandum of sale, the application would be "submittable."

How do you know this is the case? So even previously valid details would be not pass this check? Do you think it's therefore more likely solicitor's bank that has it but failed to route it?

I've been doing this for a living for 40 years in August. Lenders are expected to keep their solicitor panels up to date. It's an FCA requirement. If the broker can use out of date details, that isn't the broker's fault as they shouldn't be available on the Santander system. In addition, surely the mortgage offer would have gone to the wrong solicitor/branch if there was such an error. Sorry, I'm not going to speculate on where the funds might have gone. Only Santander has the sort code and account number to which it sent the money.

I take it that this sort of thing doesn't happen often?  

I'm hopeful that someone's PI insurance will eventually pick up the tab for this, rather than the OP's mum, but it must be pretty worrying. 


. 

No. I've heard of money getting stuck in AML checks for days but I thought the lender/solicitor COT and banking process was pretty robust.

Even that is pretty unusual - occasionally stuff gets delayed but it's only usually fairly briefly. Of course this is another good reason why usually the money is requested for the working day prior, too! 

dteezle

Update:

Funds have been found with lender's bank, solicitor's bank finally decided to trace the funds after receiving a copy of the trace from the lender's side.

Lender and solicitor's bank finally communicated directly and they were sitting with their compliance team. Apparently because they only had one name down (not sure exactly what this means yet, trying to find out more info).

Still awaiting release of funds into solicitor's account though and renewed completion date. Other issues at play like removals needing to be rebooked etc

dteezle

dteezle said:

Update:

Funds have been found with lender's bank, solicitor's bank finally decided to trace the funds after receiving a copy of the trace from the lender's side.

Lender and solicitor's bank finally communicated directly and they were sitting with their compliance team. Apparently because they only had one name down (not sure exactly what this means yet, trying to find out more info).

Still awaiting release of funds into solicitor's account though and renewed completion date. Other issues at play like removals needing to be rebooked etc

Correction on the above!

Funds have been found with solicitor's bank

tooldle

dteezle said:

Update:

Lender and solicitor's bank finally communicated directly and they were sitting with their compliance team. Apparently because they only had one name down (not sure exactly what this means yet, trying to find out more info).

Wrong account name perhaps?

housebuyer143

Be sure to lodge a complaint with your solicitor so you don't get lumped with any costs for the failed completion.

EssexHebridean

housebuyer143 said:

Be sure to lodge a complaint with your solicitor so you don't get lumped with any costs for the failed completion.

Definitely this. Also get a detailed list of any and all associated costs that your Mum has incurred - for example any deposit on removal fees that she has lost. I would also add to that list any more general inconveniences, for example if people have had to take additional days off work to help her with the move, that sort of thing. Read up in detail what the complaint procedure is, and how to escalate (the original Terms of Retainer document she signed will help here). The solicitor will be extremely keen to prevent this becoming an official formal complaint. 

I am very glad indeed it got sorted - it's a poor reflection on the industry in general that your Mum's solicitors allowed this to happen, though. 

dteezle

UPDATE

Completion has happened just now! 

Solicitor agreed to pay seller's costs as they will make a claim from the bank. Not sure RE my mum's costs yet but obviously she is preparing to itemise all of them.

@EssexHebridean thank you for the really great advice; definitely we will look at those costs like storage, extra removal fees and really good advice around extra days off.

Thanks everyone for the great advice on here, really helped!

GixerKate

Congratulations!!

I haven't posted previously as didn't have anything helpful but have been following hoping that it all gets sorted for you and your mum.  I can't imagine how stressful this has been for you, glad you have things moving in the right direction now.