Drawdown period

newtoitall

Sorry for the lack of knowledge but my seller is asking me how quick is it to release funds from lender? Something to do with the drawdown period?

G_M

If you're buying, and applying for a new mortgage, the funds will be released a day or two before Completion.

Have you Exchanged? Had the valuation done and mortgage approved? All searches done? Exchange happens when all this (and more) is done, and all others in the chain have also done all this. Completion usually follows between a week and 6 weeks later.

Drawdowns however usually apply to an existing mortgage, on a currently owned property, where you have, perhaps, overpaid on the mortgage and wish to drawdown some cash from the overpaid amount. Or similar.

newtoitall

Hi

If all searches have been done, all members of the chain have mortgage offers, surveys done and we have all verbally agreed an exchange date, do the solicitors have to request the funds in advance from the banks? If an exchange date is set for Monday, can the completion date be set for the same week on Friday?

mrschaucer

If you're a FTB (?) then surely it's up to you to make sure your solicitor has your deposit in time for exchange. I don't think he "requests it" from your bank. Completion can be set for whenever everyone wants/is convenient.

nell53

Sorry, Mrs C, but in my experience the solicitor does in fact request it from the lender once they are confident everything is in place with the contracts exchanged etc. My lender told my solicitor they needed 5 working days to send the funds- and they wouldn't accept a fax- the request had to arrive with them by post [what century are they living in?]

mrschaucer

Oh yes, sorry! Thought we were talking about deposits as they haven't exchanged yet. Completion funds are "requested", as you say, so how long is a piece of string ...

timmyt

nell53 wrote: »

Sorry, Mrs C, but in my experience the solicitor does in fact request it from the lender once they are confident everything is in place with the contracts exchanged etc. My lender told my solicitor they needed 5 working days to send the funds- and they wouldn't accept a fax- the request had to arrive with them by post [what century are they living in?]

faxes are not confidential and can be tampered with.

no lender needs that long now adays. natWest can release within 2 hours, sthat is how fast some are.

always get the money the day before completion - how many conveyancers get that wrong

wessexw

The time needed by the lender will be with the mortgage offer documents that they send to your solicitor. So ask the solicitor what the instruction say if you already have the offer, if not then check directly with your broker/lender.

My lender requires 7 days notice though in reality they normally do it in about 2 days. However we will be giving them 7 days notice so there's no come back from them if they are slow off the mark.