Historical update: This article records a Halifax Part 2 requirement reported in January 2013. It should not be relied upon as evidence of Halifax’s current instructions. Where the wording applicable to a past transaction is important, use the Lexsure Halifax Lender Handbook Archive to investigate the requirements recorded for the relevant completion date.
Those lawyers on the the Halifax solicitors panel need to be aware that Halifax has made important changes in relation to section 10.7 of their Part 2 lender handbook Part 2 conditions. The requirements set out how quickly a conveyancing solicitor should return the the mortgage advance in situations where there is a delayed completion. The time frame to return monies depends on the account/roll number and can vary between 1 working day or 5 working days.
For law firms looking to be updated when Halifax change their Part 2 instructions they should sign up for the LENDERmonitor notification service. There are certain key conveyancing documents that should be updated when it comes to advising borrowers that you drawdown ahead of the proposed completion date. These include the firms Report on Title. Also consider updates to your Terms and Conditions.
An example Report on Title paragraphs might be along the following lines:
“From the date that the loan is released, which will typically be one working day ahead of completion, until {day} {month} {year}, interest will accrue on the loan at a fixed rate of {rate}%… Please note that your first repayment will be for a greater amount because it will comprise one month’s normal repayment plus interest that has accrued on the loan in the month that the mortgage is released to us.” in fact one lender in their P2 at 10.2b stated “When requesting funds for the working day before completion please ensure all customers are aware and are in agreement as interest will accrue from the day funds are released and this will affect their first monthly payment date and amount.”
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