How long does it take to release mortgage funds?

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When are funds needed when buying a property?

If you’re buying a property, you’ll need to have your mortgage funds available at various stages of the process. Typically, you’ll need to have your deposit ready when your offer is accepted, as this will usually be around five to ten per cent of the property’s value. Then, once your offer has been accepted and the sale has been agreed upon, you’ll need to have your mortgage funds ready for when the exchange takes place. 

This is when the purchase contract becomes legally binding, so it’s important that you have your mortgage funds available to pay the purchase price balance. Finally, you’ll need to have your mortgage funds ready on completion day, when ownership of the property officially transfers from the seller to you.

At each of these stages, your mortgage lender will need to have approved your loan, and they’ll need to have agreed to release the funds. This takes time and can vary, but it’s usually around two to four weeks from when you first apply for a mortgage until the day of exchange. So if you’re buying a property, starting the mortgage application process as early as possible is essential.

If you’re remortgaging, you won’t need to have your mortgage funds available at any point during the process, as you won’t be paying for a property outright. Instead, your lender will transfer the outstanding balance on your current mortgage over to your new deal. This means that the whole process can be much quicker, as there’s no need for your lender to assess your affordability or for you to arrange a valuation. As a result, it’s not uncommon for remortgage applications to be completed within four to six weeks.

How long will it take for lenders or solicitors to release mortgage funds?

It can take a few days or weeks for your mortgage lender to release the funds. The time it takes will depend on the type of mortgage you have and the lender’s internal processes. For example, if you have a fixed-rate mortgage, the lender may need to wait until the end of the fixed-rate period before releasing the funds.

If you’re using a solicitor to help with your mortgage application, they may also need to check that everything is in order before releasing the funds. This can add a few days or weeks to the process.

Once everything has been approved, and all the paperwork is in order, most lenders will release the funds within a few days. However, some lenders may take longer, so it’s essential to ask about their timeline when applying for a mortgage.

Some lenders offer ‘fast-track’ mortgage products that can release the funds within a few days if you need the funds urgently. However, these products usually come with higher interest rates and fees, so it’s important to compare all your options before deciding on a mortgage from the wrong lender.

When considering how long it will take to release mortgage funds, it’s essential to factor in the time it takes for everything to be approved and in order. With a little bit of planning, you can make sure that your mortgage application goes smoothly and that you get the funds you need promptly.

Anti-money laundering checks

The mortgage industry is heavily regulated to prevent money laundering, and all mortgage lenders must carry out these checks. In addition, the Financial Conduct Authority (FCA) introduced new anti-money laundering regulations in 2017, which apply to all financial institutions in the UK, including mortgage lenders. These regulations are designed to prevent criminals from using the financial system to launder money.

In order to pass the anti-money laundering checks, you will need to provide proof of your identity and proof of your income. This can include things like your passport, driving licence, utility bills, payslips, tax returns or bank statements. The lender will also carry out a credit check as part of the process.

Once you have passed the anti-money laundering checks, the mortgage lender will then need to assess your affordability. They will look at your income and outgoings to make sure you can afford the mortgage repayments. This process can take a few days to a couple of weeks.

Once you have passed the affordability assessment, the mortgage lender will issue a formal mortgage offer. This is a legally binding document that sets out the terms and conditions of the mortgage.

Once you have accepted the offer, the mortgage lender will then arrange for a valuation of the property you are buying. This is to make sure that the property is worth at least the amount you borrow. The valuation usually takes place within a few days.

Once the valuation has been completed, the mortgage lender will release the funds to your solicitor. They will also send you a mortgage statement, a legally binding document that sets out the terms and conditions of the mortgage.

Can I do anything to speed up the release of funds when buying a house? 

One thing you can do is to use a mortgage broker. A mortgage broker is someone who specialises in finding mortgages and can help you compare different products from different lenders. They will also be able to give you advice on which product is best for your individual circumstances.

Another thing you can do is to make sure that all your documents are in order before you apply for a mortgage. This includes things like your passport, driving licence, utility bills, payslips, tax returns or bank statements. If you have everything in order before you apply, it will speed up the process as the lender won’t have to request any additional documents from you.

If you’re self-employed, it’s also good to get your accountant to prepare your accounts in advance. This is because most mortgage lenders will require at least two years’ worth of accounts when assessing your affordability.

Finally, it’s important to remember that the mortgage process can take a few weeks, so it’s important to be patient. If you’re looking to buy a house quickly, it might be worth considering a bridging loan. Bridging loans are designed to help people buy properties rapidly and be used as a short-term finance solution.

A guide to releasing mortgage funds by Bolt Mortgages

If you’re wondering how long it takes to release mortgage funds, the answer can vary depending on a few factors. However, as experts in mortgage advice in the UK, Bolt Mortgages can help guide you through the process and ensure that everything runs smoothly.

One of the main factors affecting release times is whether or not you can provide all of the required documentation upfront. In some cases, borrowers are asked to provide proof of income, employment history, and other financial information before a lender will agree to release funds. If you can provide this information quickly and easily, it can speed up the process considerably.

Another factor influencing release times is the type of mortgage you’re applying for. Some mortgages, such as buy-to-let mortgages, can take slightly longer to arrange and release funds. There are usually a few more hoops to jump through to get approval.

At Bolt Mortgages, we understand that waiting for mortgage funds can be frustrating. That’s why we work hard to make the process as quick and easy as possible for our clients. We’ll guide you through every step of the application process and do everything we can to ensure that your funds are released as quickly as possible. Contact us today to learn more about how we can help you secure the mortgage you need.