Can I drawdown mortgage funds after I’ve closed on house purchase? (time lag issue)

[mustang01]

Long story short, I’m closing on a house soon and want to get keys and move in asap. I’m fully approved and ready to draw down mortgage once completion notice is in but my solicitor says it’ll still take up to 2 weeks or more for mortgage funds to come through once all legal documentation is sent.

I’ve run the numbers and could just about cobble together enough to complete the deal with leftover savings/selling shares and even maxing out the credit cards in the interim if needs be to avoid the wait, but will or can the solicitor ‘pay me back’ once drawdown money comes in?

To be clear I still need the mortgage otherwise I’m completely cleaned out, it’s more a case of providing myself with ‘bridging’ of sorts in order to get the keys faster and avoid the additional wait.
Is this feasible or even workable from a legal POV?

 

[LLB123]

As long as you're certain the mortgage is coming then I think better to wait it out, especially if as you say you'd be cleaned out by trying to pay it all yourself. No point in adding additional stress trying to pull money from down the back of the couch and stressing yourself out even further for the sake of a couple of weeks.

 

[skrooge]

It sounds questionable. It's ultimately comes down to what your solicitor is willing to do. On one level you may be asking them to effectively lie for you.

IANAL but I imagine your mortgage offer relates to the purchase of the property from a third party. If you draw down a mortgage secured on a property you already own (even if you only purchased it the day before) that's technically an equity release product. Most Irish lenders don't offer such a product.

Doing it the way you suggested may breach the terms of your mortgage. Not that the bank would really know but it might put your solicitor in a questionable position. They may or may not be willing to play ball.

 

[Brendan Burgess]

I’m closing on a house soon and want to get keys and move in asap. I’m fully approved and ready to draw down mortgage once completion notice is in but my solicitor says it’ll still take up to 2 weeks or more for mortgage funds to come through once all legal documentation is sent.

So this is a new house?

It's probably better to understand the steps involved to see can you reduce the delay.


Completion notice issued ( by whom?)
Developer's solicitor sends contracts to your solicitor. (Or has all this been done?)
Your solicitor checks the contracts and raises queries.
Your solicitor confirms to the bank that everything is in order.
The bank issues your solicitor the check.
Your solicitor and their solicitor close the deal - your solicitor gives them the money, they give him the keys and title deeds.

You should try to hurry up the process but I don't think you should ask your solicitor to do something underhand. If you use your funds to buy the house and the bank sees some problem with the documentation, then you could be in trouble.

Brendan

 

[mustang01]

So this is a new house?

It's probably better to understand the steps involved to see can you reduce the delay.


Completion notice issued ( by whom?)
Developer's solicitor sends contracts to your solicitor. (Or has all this been done?)
Your solicitor checks the contracts and raises queries.
Your solicitor confirms to the bank that everything is in order.
The bank issues your solicitor the check.
Your solicitor and their solicitor close the deal - your solicitor gives them the money, they give him the keys and title deeds.

You should try to hurry up the process but I don't think you should ask your solicitor to do something underhand. If you use your funds to buy the house and the bank sees some problem with the documentation, then you could be in trouble.

Brendan

Nothing underhand, I’m just trying to speed up closing without having to wait on the bank. Yes a new house and the completion notice has just issued but the bank could take up to two weeks to release the loan. Contacts all signed months ago.
Whereas if I can gather the money to (temporarily) pay for it in cash then I can get the keys next week as opposed to waiting on the bank. Two weeks extra at a minimum when all documentation has been with them since day one is crazy imo.

 

[Sunny]

Why would you even consider this? Two weeks is standard for release of funds from when your solicitor requests it. Banks have to do due diligence on every piece of documentation. The mortgage pack that your solicitor sends in to request funds contains multiple docs.
Also as said above, you are basically suggesting buying a house without a mortgage which your solicitor will have to declare to the bank because the mortgage funds will be going to you instead of vendor. I doubt your solicitor will facilitate it and to be honest, don't even think about it.

Two weeks isn't long time and might be quicker. Developers and vendors solicitors are well used to timelines.

 

[mustang01]

Why would you even consider this? Two weeks is standard for release of funds from when your solicitor requests it. Banks have to do due diligence on every piece of documentation. The mortgage pack that your solicitor sends in to request funds contains multiple docs.
Also as said above, you are basically suggesting buying a house without a mortgage which your solicitor will have to declare to the bank because the mortgage funds will be going to you instead of vendor. I doubt your solicitor will facilitate it and to be honest, don't even think about it.

Two weeks isn't long time and might be quicker. Developers and vendors solicitors are well used to timelines.

Thank you, this is pretty much what I need to know. I’ve been waiting on the house to be ready for a year which is why I’m so impatient. The wait continues!