What/when is "drawdown" on mortgage

T

tw0nk

Guest
Hi All,

My first post and its an important one for me...

Could anyone please tell me what exactly mortgage "drawdown" is? I have been searching forums for ages and cannot get exact answer.

Permanent tsb have sent the cheque to my solicitor and he has it now, previously they sent me a letter saying I had to "drawdown" the mortgage by 25th of this month or else I will go up to new fixed interest rate.

Am I covered (on lower rate) or is it only when solicitor actually withdraws the money is the mortgage "drawndown" ?

Thanks so much in advance...
 
Drawdown should be when the cheque issues from the lender to your solicitor as far as I know.
 
ClubMan said:
Drawdown should be when the cheque issues from the lender to your solicitor as far as I know.
Click to expand...

hmm thats what im hoping but im not sure, im gonna try to find out for definite tomorrow, its amazing how this sort of terminology isnt clear and specified on the banks websites etc.
 
Drawdown is usually when the cheque is sent from the lender to the solicitor. The lender issues cheques on receipt of the solicitors instructions ie when the client requires the funds, so they are usually at the same time.

Edited to add: You need to check the T&Cs of your loan offer for the date of your first monthly repayment in order to obtain the rate agreed.
 
Drawdown is when the bank issues the cheque to your solicitor to pay the builder/owner of the house you are buying
 
the ebs have put up there fixed rate you can check the new ones out on there web site i think they went from fixed (5 or maybe 10 years) 4.99 to 5.85
it would be very wise to get the lowere rate
 
Clubman is right - both times. Some lenders treat drawdown as being when the cheque is sent out; some treat it as being when the cheque is cashed. PTSB usually treat it as drawn down the day afrter they send it.
 
tw0nk said:
Hi All,

My first post and its an important one for me...

Could anyone please tell me what exactly mortgage "drawdown" is? I have been searching forums for ages and cannot get exact answer.

Permanent tsb have sent the cheque to my solicitor and he has it now, previously they sent me a letter saying I had to "drawdown" the mortgage by 25th of this month or else I will go up to new fixed interest rate.

Am I covered (on lower rate) or is it only when solicitor actually withdraws the money is the mortgage "drawndown" ?

Thanks so much in advance...
Click to expand...
I'm in the same boat as yourself. I got the same letter from ptsb. You will be covered on the lower rate if the cheque has been issued. If you have online banking (with ptsb) your mortgage details should be added to that automatically, and you will see your rate there.
 
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