Can someone reassure me on sequence of events for the mortgage on completion day

[Kfjsjdbd]

Hi,

We complete this coming Thursday, and I’ve just had a panic about the sequence of money being paid on the day.

So, we have sold our house. The sale price (£700k) covers the remainder of our mortgage (£240k) and gives us £460k equity in the new house. So this goes from our buyers to our solicitors, then they pay the remainder of our old mortgage to the bank to close that down?

Then on the same day we complete on our new house (£1.1m), the remainder of the money from the sale of our house (£460k), plus then the new mortgage that we have opened sort the difference will pay for that? So that money will then all go to our sellers on the same day? Obviously all stamp duty/estate agent fees/legal fees will be paid, this is all coming from our savings, which will have been paid in advance into our solicitor.

Is this right? I feel like I don’t have a clue what’s going on with the biggest purchase of my life.

Your solicitor will apply for a redemption statement for your old mortgage 5 days prior to completion and apply to draw down the fund for the new mortgage at the same time. They will also request the amount you are paying at a similar time,
On completion day funds arrive from your sale and are divided up to pay off old mortgage and onward purchase. Funds transferred for on ward purchase. Estate agent is paid.
Final statement generated. Any surplus paid back to you,

Thanks @Lonecatwithkitten

I think I just feel like I haven’t had the conversation with our solicitor where I’ve told them that we are closing down our old mortgage and opening a new one rather than porting our mortgage and adding a bit on. Will they just have assumed we are closing down our old mortgage?

I’m panicking that there is a step that I’ve missed

They'll have a copy of your new mortgage offer. You will have had to sign a mortgage deed. They know, don't worry.

Is your solicitor also acting for the mortgage company? That is normal and may have limited your choice of solicitor. A lot of what is done on a purchase is to satisfy the mortgage lender.

We bought and sold several houses. The last time we moved we became mortgage free. Each and every time I've been absolutely convinced that we've missed a step and it won't happen. It's the only time we ever deal with or think about large sums of money and it's just so scary.

Luckily we haven't had any disasters, you have to trust the professionals you've appointed to do a good job.

Good luck!

Even if you are porting your mortgage you still pay off the old one
It's a new mortgage secured over the new property

It should all just happen at your solicitor’s which they will charge a pretty penny for. Unless it’s like our last purchase where the mortgage broker didn’t process the mortgage properly and we got a call the day before competition informing us we didn’t have the funds. Thank god for First Direct who loaned us the money within an hour as a bridging loan. The broker compensated us all the interest so it was fine in the end, but stressful beyond belief.

Yes your solicitor will handle it and hopefully everyone else in the chain will too.