Mortgage cheque not cashed but paying home insurance

D

dotcom

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Hi all,

My new house will be finished in mid-January. To avoid any problems, the mortgage cheque was drawn down early (last week) and is now sitting in my solicitor's bank account waiting to be cashed in the new year. I just noticed today, however, that the first direct debit payment for home insurance went out of my current a/c today. Is this normal? I know I should probably just contact the bank and ask them but I'm afraid they'll ask why the cheque wasnt cashed yet. I don't want to start paying it back until I absolutely have to!

Thanks in advance for any advice!
 
dotcom,

What date did you choose for first payment on the house insurance?

The timing of the cashing of the mortgage cheque and the first payment of the house inurance are not related so what has happened is not abnormal. The first payment on your life cover may come out of your account too even though the mortgage cheque has yet to be cashed.

As I said it all depends on the day you chose for first payment of the house insurance.

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Thanks for your reply Norfbank.

I guess I just got a bit mixed up with a few things. It's been a steep learning curve!

Should I just take it that my home insurance is completely sorted now? The reason I ask is that the mortgage/insurance advisor mentioned something about the quote only lasting a month and that I would need to ring them again before the house was finished to make sure the home insurance was in place. I think that's why I'm a bit confused!

Thanks again for your advice. Sorry if I sound completely clueless!
 
The cheque has been cashed if it's in your solicitors bank account so don't be afraid to ring the bank.
 
dotcom said:
Should I just take it that my home insurance is completely sorted now? The reason I ask is that the mortgage/insurance advisor mentioned something about the quote only lasting a month and that I would need to ring them again before the house was finished to make sure the home insurance was in place. I think that's why I'm a bit confused!
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It sounds like you have course of construction insurance in place at the moment, once the house is finished you will change this to normal house insurance. This could be what the advisor was talking about but call to make sure.
 
dotcom said:
....but I'm afraid they'll ask why the cheque wasnt cashed yet. I don't want to start paying it back until I absolutely have to!
Click to expand...

I may be misunderstanding your post but it sounds like you think that your mortgage repayments / interest charges will not start until you close on the property transaction. If the money is in your solicitor's client account then it is already drawn from the bank and the repayment cycles have commenced.

I would be interested to clarify whether it is normal for the bank to charge interest from the date the cheque was provided, the date it was presented or the date that the funds clear in to an account?
 
Anyway are cheques still in wide use? When I got my mortgage in 2008, the money was transferred through EFT.
 
Cooper7 said:
The cheque has been cashed if it's in your solicitors bank account so don't be afraid to ring the bank.
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My solicitor told me that she wouldn't cash it until January so I don't have any reason not to believe her.
 
NorfBank said:
It sounds like you have course of construction insurance in place at the moment, once the house is finished you will change this to normal house insurance. This could be what the advisor was talking about but call to make sure.
Click to expand...

Thank you Norfbank. I'll do that.
 
ontour said:
I may be misunderstanding your post but it sounds like you think that your mortgage repayments / interest charges will not start until you close on the property transaction. If the money is in your solicitor's client account then it is already drawn from the bank and the repayment cycles have commenced.

I would be interested to clarify whether it is normal for the bank to charge interest from the date the cheque was provided, the date it was presented or the date that the funds clear in to an account?
Click to expand...

My solicitor read from some documentation from the bank stating that interest repayments would not commence until the cheque was cashed.
 
plant43 said:
Anyway are cheques still in wide use? When I got my mortgage in 2008, the money was transferred through EFT.
Click to expand...

It was a cheque that was mentioned to me in all correspondence between myself, the bank and my solicitor.
 
dotcom said:
My solicitor told me that she wouldn't cash it until January so I don't have any reason not to believe her.
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If the money is in your solicitors bank account as you said earlier on, she's "cashed it". There is no other simple way of putting it. The fact that she may not release funds to you until Jan is irrelevant to the bank. Happy days for her, she's earning interest on your money !!
 
I am confusing everyone, including myself (most of all myself!) here, sorry folks. The solicitor never mentioned anything about it being in her account, I don't know why I even mentioned her bank account. I'm having one of those days. She mentioned a cheque which I'm presuming she is waiting to cash until next year. Sorry about all that confusion. I'm not normally so thick, I promise!

Thanks again for all your answers folks. Happy Christmas to all.
 
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