How long does it take to draw down funds for mortgage?

xela_17

We are *hopefully* on the verge of exchange but our buyers have now said that they need 10 days between exchange and completion in order to draw down funds for their mortgage. However, our lender (HSBC) has told us that it will take only 2 working days to draw down the funds for our mortgage. Does the timescale vary this much by lender or is the buyer mistaken?

Debt_Free_Chick

Depends on where their funds are .... and the process that the lender has in place. Are all their funds with the lender? Or do they have some tied up in savings accounts etc?

Smaller building societies may not have the resources of the bigger lenders (e.g. HSBC) and so the process may be a little longer.

10 days does seem long though ... perhaps they want time to make final arrangements e.g. removals etc?

AndrewSmith

I recently had this same dis-agreement with a solicitor regarding the drawdown of funds for a re-mortgage. Same basic principle.

The solicitor was adamant that it would be 10 days from requesting the funds to completion, when it actually transpired to be only 3.

The usual timeframe between exchange and completion is 1 week. It depends on who is setting this timeframe. Is it the buyer or their solicitor?

Andy

Debt_Free_Chick

To be fair, a solicitor ought to build in "some contingency" in case there's a hiccough in the system. Three days is really cutting it fine ... it can be done, but I'd hate to be held to such a tight deadline.

xela_17

The buyer is a ftb and has a 100% mortgage so no savings.
Not sure whether it is the actual buyer or their solicitor setting the timescale. I'll find out.
I thought the normal time was one week also and as I'm sick to death of this whole move with all of its problems, I'm desperate to get it done!

AndrewSmith

Debt_Free_Chick wrote:

To be fair, a solicitor ought to build in "some contingency" in case there's a hiccough in the system. Three days is really cutting it fine ... it can be done, but I'd hate to be held to such a tight deadline.

Not saying this is the norm, just what happened in this case.


@ the OP,

If they are getting a 100% mortgage then they will be exchanging and completing on the same day, as they will have no deposit funds to give at exchange.

Andy

xela_17

AndrewSmith wrote:

If they are getting a 100% mortgage then they will be exchanging and completing on the same day, as they will have no deposit funds to give at exchange.

Andy

It's strange but there has been no mention of a deposit given at exchange by anyone to anyone at any time throughout this process. We only have a 5% deposit but our solicitor has not asked us for it, even now she has told us that we are ready to exchange, just waiting for confirmation of completion date.

Debt_Free_Chick

AndrewSmith wrote:

Not saying this is the norm, just what happened in this case.


@ the OP,

If they are getting a 100% mortgage then they will be exchanging and completing on the same day, as they will have no deposit funds to give at exchange.

Andy

I thought the lender advanced the deposit at the point of exchange .....