Mortgage and Exchange of Contracts/Completion Gap

tharsos

I am trying to minimize the gap between Exchange of Contracts and Completion. My mortgage offer has been issued and I am planning to sign contracts soon and have completion before Christmas. Usually banks need a few working days (possibly a week) to draw down funds, but is there a way to speed it up? I read somewhere that you can inform the bank actually before exchange and then you can have the money ready sooner. Have anyone actually done that? I will ask my mortgage adviser about it once he will be available, but wanted to know if anyone had luck reducing the time between exchange and completion to less than a week (I was hoping maybe 2 days). Btw, There is no chain involved in my purchase.

katep23

We're in the same position and want to exchange and complete on the same day which our solicitor has confirmed is fine.


Our lender needs 6 working days notice so the solicitor instructed them to draw down the money yesterday with a view to it being with them Wednesday / Thursday next week and exchanging and completing next Friday.


The contracts are with the solicitors already and we are in the process of transferring the deposit and fees.


We are chain free (renting) and the house we are buying is empty.

Thrugelmir

tharsos wrote: »

I read somewhere that you can inform the bank actually before exchange and then you can have the money ready sooner.

If exchange doesn't happen then the funds get returned. Remember all parties in the chain exchange at the same time. So it's not just you that matters.

Yorkie1

Also be aware of the stress that close exchange / completion (particularly on the same day) can bring.

We have seen many posts on here where the planned date does not occur for some reason (either foreseeable or otherwise). People have got removals booked, are sitting there among their boxes, have given notice to vacate their rental etc, and then it doesn't happen.

ethank

I would never ever exchange and complete on the same day!

lafemme51

tharsos wrote: »

I am trying to minimize the gap between Exchange of Contracts and Completion. My mortgage offer has been issued and I am planning to sign contracts soon and have completion before Christmas. Usually banks need a few working days (possibly a week) to draw down funds, but is there a way to speed it up? I read somewhere that you can inform the bank actually before exchange and then you can have the money ready sooner. Have anyone actually done that? I will ask my mortgage adviser about it once he will be available, but wanted to know if anyone had luck reducing the time between exchange and completion to less than a week (I was hoping maybe 2 days). Btw, There is no chain involved in my purchase.

I have simultaneously exchanged contracts and completed on the same day twice in the past just make sure solicitors give bank a weeks notice of your intention to do so. There's no chain so there's no issue as long as you don't ask bank two days before. Good luck.

pinkteapot

OP - your solicitor is the one you should be speaking to. They're the one who requests the drawdown of funds from the bank. You don't need to worry about that yourself. Tell your solicitor that you want to exchange on X date and complete on Y, and it's up to them to get the finances straight.

Some solicitors charge a bit more for exchange and completion on the same day.

Obviously all parties in the chain have to agree to the completion date.

JimmyTheWig

Yorkie1 wrote: »

Also be aware of the stress that close exchange / completion (particularly on the same day) can bring.

Not so stressy for a FTB.
Especially if they are living with parents.

Yorkie1

JimmyTheWig wrote: »

Not so stressy for a FTB.
Especially if they are living with parents.

True, but OP has not said they are living with parents.

They could easily have given notice on their rental property in line with their expectations of exchange / completion at the end of that notice period.

d0nkeyk0ng

ethank wrote: »

I would never ever exchange and complete on the same day!

Why?

Only asking because like one of the posters I'm a FTB living at home with parents and buying a chain free house.

lafemme51

ethank wrote: »

I would never ever exchange and complete on the same day!

Yes why not? You don't decide the day before to do it, you discuss it with your solicitor at least a week or two beforehand. I've done this twice, advised solicitor a week before, no problems.

There is no chain here so only themselves to consider.