Mortgage Advance explained and available solutions from Shire Direct!
The Mortgage Advance is the mortgage amount paid over by the lender to the borrower's solicitor, in order to enable the transaction to complete.
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The following is a more detailed explanation of the Mortgage Advance, including information on how a mortgage advance is forwarded and interest charged by Lenders on Mortgage Advances. Finally, we provide details of how we might be able to help you further with regards to a mortgage or remortgage.
Table of Contents:
What is a Mortgage Advance?
The Mortgage Advance is the sum of money paid by the Lender to the Solicitor of the borrower enabling their mortgage transaction to complete.
Mortgage Advance and Cleared Funds
The Mortgage Advance must be forwarded to the solicitor as cleared funds. This means that if the lender forwards the mortgage advance by cheque, the solicitor will require at least 10-days for the cheque to clear.
- Bankers Draft:
A Bankers Draft is where the advance monies are forwarded on a draft issued on the Bank's account, and which is therefore guaranteed as cleared funds. The draft will usually be requested up to four days prior to completion.
- Telegraphic Transfer:
Through Telegraphic Transfer, where the mortgage advance funds are transmitted to the solicitor directly from the lender's account electronically through the banking system, usually on the business day prior to when the completion actually takes place. This is treated as a cash payment, and therefore cleared funds.
Interest on the Mortgage Advance
Borrowers must be aware that interest will often be charged on the money advanced by the lender as follows:
- If paid by cheque:
From the date the cheque is issued, and not when it leaves the lender's account. As a result interest can be accruing from up to ten days prior to the mortgage completion.
- If paid by Bankers Draft:
Up to four days prior to completion, although an additional charge will usually be payable for the use of a draft.
- If paid by Telegraphic Transfer:
Interest will be charged from the day monies are transferred, usually the day prior to completion. However, a fee of approximately £40 is levied on telegraphic transfers.
Need more information and details as to how Shire Direct could help you?
Hopefully that has answered any questions you may have had with regards to the Mortgage Advance. If you are thinking of applying for a mortgage or remortgage, we would of course love to hear from you! You can speak with a qualified Mortgage Advisor here at Shire Direct up until 10.00pm daily, including weekends. So why not give us a call on Freephone 08000 282 281, or use our online contact form to get in touch anytime. You'll find our approach friendly, helpful and professional.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.