# What/when is "drawdown" on mortgage



## tw0nk (18 Jul 2007)

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...


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## ClubMan (18 Jul 2007)

Drawdown should be when the cheque issues from the lender to your solicitor as far as I know.


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## tw0nk (18 Jul 2007)

ClubMan said:


> Drawdown should be when the cheque issues from the lender to your solicitor as far as I know.


 
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.


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## ClubMan (18 Jul 2007)

Could also be when the cheque is drawn on/cashed.


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## PM1234 (18 Jul 2007)

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.


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## thombom (19 Jul 2007)

Drawdown is when the bank issues the cheque to your solicitor to pay the builder/owner of the house you are buying


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## Niallm (19 Jul 2007)

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


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## MOB (19 Jul 2007)

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.


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## Bill Struth (19 Jul 2007)

tw0nk said:


> Hi All,
> 
> My first post and its an important one for me...
> 
> ...


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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## PM1234 (19 Jul 2007)

1st payment is usually 30 days from when cheque is cashed.


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