Drawdown of Mortgage

Hi,

Just a quick question.

Our mortgage was drawndown this week without our request/knowledge - our apartment is not ready so natuarlly we do not want to pay interest and repayments until it is.

Can we claim back interest paid on the mortgage or claim back the interest paid to the solicitor as it is now sitting in their account?


Thanks a mil,
Becs

becsnicholso said:

Our mortgage was drawndown this week without our request/knowledge

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How exactly did this happen? I didn't think that a lender would allow the mortgage to be drawn down until the borrower had secured beneficial ownership of the property on which the loan was secured!

Can we claim back interest paid on the mortgage or claim back the interest paid to the solicitor as it is now sitting in their account?

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Have you asked them?

unfortunately solicitors can sometimes drawdown your mortgage too early. This should never really happen as your solicitor should not request the cheque untill he/she has a closing date. However some mortgage lenders do not start charging you interest untill the cheque is cashed, while others charge from the day the cheque is released. If interest is adding up and your closing date is a bit off then you should get your solicitor to return the cheque and then re request it when he has a closing date.

To be honest Im not sure - as far as I was aware the indemnity letter from the builders was still outstanding. I am still waiting for confirmation from the solicitor as to how/why this was drawn.

The solicitor usually wouldn't request the cheque until it is needed. One possibility may be that it was drawndown in order to hold a rate.

However the only person who can answer your question correctly is your solicitor.