Mortgage drawdown

[nk14]

hi

we are trying to buy at present and have signed contracts but vendors have not signed and seem to be delaying

we are ftbs and have 100% mortgage and solicitor has advised to proceed and draw down the mortgage and then try and get them to close with the fund ready to go

i am a lttle wary on this as the vendor does seem to be stalling and we dont want to be hit with mortgage interest should he not sign

if we do drawdown and then after say 5 days nothing happens and we return mortgage chq to bank will we only be stung for 5 days interest or are there any other potential costs

 

[Dreamerb]

we are ftbs and have 100% mortgage and solicitor has advised to proceed and draw down the mortgage and then try and get them to close with the fund ready to go

It sounds a bit risky to me - has your solicitor discussed other options with you, such as giving them notice to close?

I'd be cautious about drawing down if the vendors haven't signed contracts or given a clear indication of when they will do so, but your solicitor may have reasons for advising the specific course of action. I'd advise discussing the full potential liabilities with her / him before making a decision, but she / he will be responsible for the money until closing and has all sorts of responsibilities to the lender, so you probably won't be liable for more than the few days' interest to the lender; if there's a bond required you should explicitly check if you'll be liable for that cost. And if there's a broker, check if you'll become liable for any fee.

Hope it works out for you!
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