Mortgage cash back > solicitor says we’ve received it.. but I’m unsure?

[Ginbutholdthetonic]

Just copy and pasting as I posted in money matters but feel this section may also help!

We took out a mortgage with TSB that offer a £500 incentive cashback.

we’ve enquired about this now we’re moved in and our mortgage advisor confirmed that TSB release the cashback at the same time as the funds. Our solicitor is saying we have received it in the mortgage funds. But we haven’t had anything?

solicitor said it’s because the mortgage amount was £98,885, but was sent £99375 by TSB - therefore it’s been paid into the house I’m assuming?

however on our paperwork and mortgage illustration it quotes the mortgage currency loan to be repaid is to the sum of £99375.

so if we’re repaying £99,375 .. that is not cashback, surely?

can anyone help clarify. Maths is not my strong point at all!

Some of this seems the wrong way around. The loan n which you are paying should be the lower amount. The money sent by TSB to your solicitor should be the higher amount.
The question is what happened to that higher amount. It sounds like you were expecting the lower amount to go towards purchase snd the £500 to come to you. But did the higher amount go towards the purchase? In other words have you borrowed £500 less than you needed for your purchase?

Or have I completely missed something?

Are these 2 different documents?

To me, it looks like you initially wanted to borrow 98,875 (eg on your initial enquiry/decision in principle) it then looks like when you finally sale agreed, you actually needed to borrow 99,375.

On your TSB document there would be a special features section that would tell you about your cashback, and how that would be/was paid and they would send you that document directly when your mortgage completed (eg started).

Your solicitor should have sent you a separate invoice laying out their fees too, prior to you paying it (usually on email) so definitely worth checking.

Also check your online banking (probably where you pay your mortgage from) for the date that your mortgage completed incase the money was paid directly to you on completion (which is sometimes how a lender pays it). Also if you can see your mortgage on your online banking, it will show the starting amount

The cashback isn't part of the mortgage and you aren't charged interest on it so is usually released separately :)

I have worked in conveyancing for a number of years -admittedly I don't anymore but I doubt things have changed! and this should all be accounted for in your completion statement. As other pps have stated -ask for this if you dont have it. It's fine if you got a "draft completion statement" and nothing else if nothing changed from the draft. Usually it doesn't

I have never once been involved in a transaction where the cashback was sent separately to the client instead of being included as part of the comp stat. Can you upload a copy of this?

Essentially they will usually have a spreadsheet which says things like purchase price, mortgage advance (this may sometimes include the cashback), sdlt fees, solicitors fee, land registry fee on one side (perhaps if the cashback amount is not included in the mortgage advance it will be listed here) then the deductions will be deposit paid, monies on account etc. Then at the end it will say "balance to complete" and the amount you're supposed to send them. It should all be on here. Unless your solicitor has messed up, I'm sure this will account for it!

As pp has said, we recently had this via TSB also and the £500 was shown as a deduction to the amount we needed to pay on the final completion statement. I.e. it was paid to our solicitors and then they took that off their final bill to us.