Solicitor and mortgage cheque cashment

Sorry if this should be in Legal section – feel free to move…

I am in process of re-mortgaging and Financial Institution has issued the cheque to my solicitor.

Question 1 – Would the cheque be made payable to me or my solicitor? (Who is named on the cheque)

Question 2 – If made payable to me why would solicitor lodge it into their account?

Am I just naïve in thinking a cheque for me would actually be for me?

BB

Re: Solicitor and mortgague cheque cashment

Question 1 – Would the cheque be made payable to me or my solicitor? (Who is named on the cheque)

Depends on the lender - some issue cheques in the name of the borrower, some in the name of the solicitor and some issue funds by electronic transfer.


Question 2 – If made payable to me why would solicitor lodge it into their account?

Am I just naïve in thinking a cheque for me would actually be for me?

The lender is relying on the solicitor to repay your existing mortgage so no, they won't let you have it.

mf

Re: Solicitor and mortgague cheque cashment

Thanks for the reply mf1.
Q1 I will check with my lender if possible.
Q2 I was unclear - the re-mortgage is actually a "top up" so no need for repayment of existing mortgage. Would this make a difference?

BB

Re: Solicitor and mortgague cheque cashment

All the lenders have their own particular ways of doing things so top up or not won't make the difference. After that, some lenders do not require you to use a solicitor at all but if you are required to use a solicitor, the funds would always go to them. After that, if fees are paid separately and there are no conditions ( e.g. discharge existing car/personal loans) you should get the money from the solicitor within a day or so.

mf

Re: Solicitor and mortgague cheque cashment

Breffni Boy2 said:

Q2 I was unclear - the re-mortgage is actually a "top up" so no need for repayment of existing mortgage. Would this make a difference?

BB

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Some lenders treat a 'top-up' as being actually a repayment of the original mortgage and taking out a new, larger mortgage.

Re: Solicitor and mortgague cheque cashment

EBS Building Society issue cheques in the name of the borrowers. As far as I can remember they are the only exception.

Re: Solicitor and mortgague cheque cashment

Although it may be a top up, is there any loans which need to be paid - car etc? if so the Solicitor has given an undertaking to pay these and they have to be paid before they can release funds to you.