Mortgage funds requested pre exchange!?

backtosquare1

Hi, could someone please kindly advise on this...

My solicitor has requested mortgage funds to be released by my lender. They did not contact me about this or inform me this was happening, I only found out from my mortgage broker when he called to tell me this morning.

I have spoken to the solicitors, and requested that they stop this immediately, given we haven't even exchanged yet and are not due to complete "imminently" as they told my MA.

Wondering how best to proceed? If I have requested that funds are not released then do they have to comply? Have they broken any rules by not informing me first? And if the transaction doesn't go through, who is liable to pay interest to the Lender (me or the solicitor)?

Thanks!

user1977

How non-imminently are you expecting completion to occur? What did your solicitor say about it when you spoke with them?

Requesting funds prior to exchange is not in itself uncommon, given that often exchange and completion are close together (if not simultaneous).

RelievedSheff

Our solicitors requested fund prior to our exchange but they had to given that we were exchanging and completing on the same day.

Surely the best person for you to be speaking too about this is your solicitor?

Hoenir

Wonder  if there's miscommunication in the terminology here. Your solicitor cannot discuss exchange until the lender provides their clearance on releasing the mortgage funds. 

Herzlos

What did the solicitor say when you asked them about it?

backtosquare1

user1977 said:

How non-imminently are you expecting completion to occur? What did your solicitor say about it when you spoke with them?

Requesting funds prior to exchange is not in itself uncommon, given that often exchange and completion are close together (if not simultaneous).

NB property so the developer has set completion for 17th. However there are several defects which need rectifying hence why I am holding off on exchanging until they have done so. In my eyes it's now going to be in the new year

backtosquare1

RelievedSheff said:

Our solicitors requested fund prior to our exchange but they had to given that we were exchanging and completing on the same day.

Surely the best person for you to be speaking too about this is your solicitor?

Exchange and completion definitely not same day in this case. Have spoken to the solicitor but not much help as per

backtosquare1

Hoenir said:

Wonder  if there's miscommunication in the terminology here. Your solicitor cannot discuss exchange until the lender provides their clearance on releasing the mortgage funds. 

But then does that not mean if funds are released prior to exchange I'll be liable for interest if we don't proceed?

backtosquare1

Herzlos said:

What did the solicitor say when you asked them about it?

"Glitch in the system"

cr1mson

Is the sol aware that you are planning on delaying exchange and completion? Has this been agreed with seller?

eddddy

backtosquare1 said:

Herzlos said:
What did the solicitor say when you asked them about it?

 "Glitch in the system"

I'd guess that "Glitch in the system" is 'solicitor speak' for "Oops - I got the dates confused."

In your position, I'd just play along and reply something like "I assume I won't get charged any interest as a result of the glitch".


If the answer is that you will get charged, then maybe start digging a bit further. If the answer is that you won't get charged, leave it at that.