Deposit loan not cleared on drawdown of mortgage

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Niallman

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Hi, I recently bought a house with a 100% mortgage from PTSB and also borrowed the deposit from PTSB with the understanding that it would be cleared off with the balance of the mortgage. I naively assumed PTSB would handle that. Just discovered last week however that a repayment was taken out of my account to start paying off the deposit which was never cleared. Money I shouldn't have had to pay and can't afford at the moment. PTSB are telling me that the solicitor is supposed to to have cleared the loan with the balance of the mortgage and the solicitor is saying that PTSB never sent the redemption figure for the loan. Who's responsible here and can I get my money back?
 
Presumably if they issued a 100% mortgage and failed to pay of the deposit loan you have a bagful of cash somewhere in the system?
 
you solicitor has it in his accounts and has kept ALL the interest on it for you as well you will be glad to hear.

solicitors are very upstanding like that :D
 
Yes indeed, for the few weeks I had assumed the loan was cleared, the balance of the mortgage has been "resting" in someone elses account.
 
I'm pretty sure that your solicitor will have given an undertaking to repay the bridging loan with the proceeds of the mortgage cheque. And in my own experience (with Ulster Bank), the bank required that this letter of undertaking note the amount of the bridging facility.

Note that you are still liable for interest on the bridging loan-could this have been what has been taken from your account?
 
CCOVICH said:
Note that you are still liable for interest on the bridging loan-could this have been what has been taken from your account?
Click to expand...

As its resting in the solicitors office ring up them up and organise collection of cheque for 10% + Interest tomorrow morning and deposit it straightaway in your bank to clear off that bridging loan.
 
Thanks for all your comments. The solicitor has accepted responsibility and we're getting the money back less the interest we were due to pay anyway. Phew!
 
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