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Can mortgage funds be released before the deposit funds are released?
BDUNLOP
Posts: 3 Newbie
We have a mortgage offer from Barclays. We have a deposit fully saved but it is locked in an ISA until 8th March (the 1 year anniversary of opening the account)
Our new build is ready for completion on the 17th February. Our contractor has asked if it is possible for our mortgage funds to be released to him on 17th February and he will recoup the remainder of the funds on 8th March when our ISA provider can release them.
We would like to do this.
Is this possible? How would it be done? Has anyone got any experience in this?
Thank you all in advance for any light you can shed - we have stomach knots over it all!
Our new build is ready for completion on the 17th February. Our contractor has asked if it is possible for our mortgage funds to be released to him on 17th February and he will recoup the remainder of the funds on 8th March when our ISA provider can release them.
We would like to do this.
Is this possible? How would it be done? Has anyone got any experience in this?
Thank you all in advance for any light you can shed - we have stomach knots over it all!
0
Comments
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If they're willing to complete the sale to you before you've paid them the full price, yes you can do this. Are you talking to someone who actually understands the legal process though? It's pretty unusual as a proposal.
What you definitely can't do is hand over the mortgage funds without in return getting legal title to the property.0 -
Thanks David McN, I'm not sure how savvy he is legally or if he is aware of the need to sign over the house before receiving the last of the funds. I will run through those details with him.
If he is happy to proceed is there any reason my solicitor would object? He has stated the deposit monies and the mortgage funds MUST be released on the same day.0 -
Well there you go then. Anyway, I suspect it won't happen once the developer (or their solicitor) has a think about it.If he is happy to proceed is there any reason my solicitor would object? He has stated the deposit monies and the mortgage funds MUST be released on the same day.0 -
If he is happy to proceed is there any reason my solicitor would object?
Your solicitor is also the mortgage lenders legal representative in the transaction. You just happen to be paying their costs. The solicitor therefore is highly likely to object. No mortgage monies will be released until the transaction is concluded. As the property provides the security for the monies advanced.0
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