Mortgage funds requested pre exchange!?

backtosquare1

Thanks everyone for their comments.

I wanted to add that I have not yet signed my mortgage deed either, does this not need to be done before funds have been requested?

I'm just a tad concerned, and keen to know if any regs or laws have been broken here, and what my rights are if the funds do get released even though I've asked for them not to me

user1977

backtosquare1 said:

I wanted to add that I have not yet signed my mortgage deed either, does this not need to be done before funds have been requested?

No, why would it? It needs to happen before completion of your purchase. Obviously, the lender has to send the funds to the solicitor before everything is ready. So as well as you not signing your mortgage deed, the house might not be ready, the builders might not have signed their deeds, etc etc. Doesn't matter as long as it all comes together on completion.

I'm just a tad concerned, and keen to know if any regs or laws have been broken here, and what my rights are if the funds do get released even though I've asked for them not to me

What laws do you think anybody might have broken? I don't see anything to be concerned about here, just a misunderstanding about the completion date which the solicitors were aiming for, and it seems to have been sorted.

eddddy

backtosquare1 said:

I'm just a tad concerned, and keen to know if any regs or laws have been broken here, and what my rights are if the funds do get released even though I've asked for them not to me

What's behind your question? What type of 'rights' are you referring to?

For example, are you wondering whether this gives you the 'right' to a punitive damages payment, or the 'right' to a reduced solicitor's fee? That would be extremely unlikely.

loubel

It's just a misunderstanding. They probably pencilled your completion into the diary when the dates were being discussed and didn't update when it became clear that it wasn't going to happen. It's not a problem, they just cancel the funds request until you're ready to proceed.

kingstreet

Can a solicitor submit a certificate of title and request funds for a particular future date? - Yes.

Do contracts need to be exchanged or a mortgage deed signed before the COT is submitted? - No.

If the prospective completion date changes can the request be cancelled and a new COT submitted? - Yes.

If the funds are sent to the solicitor but completion doesn't happen as expected will the funds be returned to the lender by the solicitor? - Yes.

Will I pay interest in those circumstances? - No. Not normally provided this is done quickly.

When does the mortgage interest clock start ticking? - From the point the funds are received by the solicitor provided completion takes place as arranged and the funds aren't returned.

EssexHebridean

I've never known interest to be charged from the time of the funds being released - as generally funds for a Monday completion are released on the Friday prior, that would routinely create a lot of unhappy buyers if it was to be the case! 

kingstreet

EssexHebridean said:

I've never known interest to be charged from the time of the funds being released - as generally funds for a Monday completion are released on the Friday prior, that would routinely create a lot of unhappy buyers if it was to be the case! 

Interesting one. TBH I've always covered it off like that in my explanations as I always use the worst-case scenario and can't legislate for the actions of some of our lenders.