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Solicitor error - Early Repayment Charges
Help!!
My current mortgage term with Company A was due to end on 31/05/24, so I have been scouting offers on the market since around Jan 24. I was doing this through 2 routes, the Company A’s app & through my mortgage advisor
My mortgage advisor found me a deal with Company B which was firm until 26/06/24, so with so much time to find better deals, I left this option on the back burner and kept checking my Company A’s mortgage app for better deals in the months leading up to May 24
I had signed the legal charge deed for Company B and sent this off at the end of April. However, I found a better deal on my Company A’s app on 07/05/24 and decided to accept this new mortgage deal, whilst also dropping my solicitor an email saying “please cancel the mortgage application with Company B, I have now found a better deal with my current lender, Company A”
On the 03/06/24 I received an email from Company B saying that my remortgage offer had gone through, and my heart instantly sank. I immediately rang Company A who informed me that their remortgage product started on the 01/06/24, but only 2 days later on 03/06/24, Company B paid off the balance in full and they were now my new mortgage provider
Unfortunately, Company A also informed me that I was now liable for over £4000 in early repayment charges, and I am now trying to establish whether or not they will waiver them for me. I have spoken to many different people in Company A, all of whom have said they’ve never seen this happen before. In a nutshell, it happened because my solicitor did not follow my instruction to cancel the remortgage offer with Company B
The redemption statement showed zero ERC fees were to be paid, but this is not a surprise as this was calculated for my old mortgage term which was coming to an end. Company A therefore treated the fund transfer as an early exit from my new mortgage product
I am now hoping and praying that Company A waivers the ERC fees, as I really feel that this is not my fault at all. If they do not, I could try to get the funds sent back to Company B and cancel my mortgage with them, but I think they would then say I was liable for ERC fees with them
So my question is, if I instructed my solicitor to cancel the application with Company B almost 1 month before the completion date (via email), and they did not complete this action, are they liable to pay these ERC fees? If I have no luck getting ERCs wavered and the solicitors refuse to compensate me, how do I appeal this? Is it with the financial ombudsman? Or the Legal ombudsman?
Thanks
My current mortgage term with Company A was due to end on 31/05/24, so I have been scouting offers on the market since around Jan 24. I was doing this through 2 routes, the Company A’s app & through my mortgage advisor
My mortgage advisor found me a deal with Company B which was firm until 26/06/24, so with so much time to find better deals, I left this option on the back burner and kept checking my Company A’s mortgage app for better deals in the months leading up to May 24
I had signed the legal charge deed for Company B and sent this off at the end of April. However, I found a better deal on my Company A’s app on 07/05/24 and decided to accept this new mortgage deal, whilst also dropping my solicitor an email saying “please cancel the mortgage application with Company B, I have now found a better deal with my current lender, Company A”
On the 03/06/24 I received an email from Company B saying that my remortgage offer had gone through, and my heart instantly sank. I immediately rang Company A who informed me that their remortgage product started on the 01/06/24, but only 2 days later on 03/06/24, Company B paid off the balance in full and they were now my new mortgage provider
Unfortunately, Company A also informed me that I was now liable for over £4000 in early repayment charges, and I am now trying to establish whether or not they will waiver them for me. I have spoken to many different people in Company A, all of whom have said they’ve never seen this happen before. In a nutshell, it happened because my solicitor did not follow my instruction to cancel the remortgage offer with Company B
The redemption statement showed zero ERC fees were to be paid, but this is not a surprise as this was calculated for my old mortgage term which was coming to an end. Company A therefore treated the fund transfer as an early exit from my new mortgage product
I am now hoping and praying that Company A waivers the ERC fees, as I really feel that this is not my fault at all. If they do not, I could try to get the funds sent back to Company B and cancel my mortgage with them, but I think they would then say I was liable for ERC fees with them
So my question is, if I instructed my solicitor to cancel the application with Company B almost 1 month before the completion date (via email), and they did not complete this action, are they liable to pay these ERC fees? If I have no luck getting ERCs wavered and the solicitors refuse to compensate me, how do I appeal this? Is it with the financial ombudsman? Or the Legal ombudsman?
Thanks
