Drawing down mortgage

B

Bramble

Registered User
Messages
21
Hi,

I took out a 100% mortgage, and got a loan to cover the deposit until the mortgage is drawn down. The contracts are signed and everything is ready to go with the mortgage but the builder hasn't looked for any stage payments yet... Meanwhile the first repayment is due for the loan - cash is a wee bit tight at the mo and the repayment is quite large!! I really want to draw down some of the mortgage to pay back the loan asap.

Can I just instruct the bank that I want to draw down some of the mortgage?
And does it take long for the cheque to come through?
Thanks!
 
But doesn't it work differently with stage payments i.e. the mortgage will be drawn down in stages anyway as the house progresses!
 
Yes, you can draw down your mortgage to cover stage payments ... only when the builder requests payment though. Did your lender not allow you to draw the 10% deposit as part of your mortgage?
 
No, I was told I'd have to take out a loan, sign contracts, then as soon as everything approved the loan gets paid back from the mortgage. Now the builder doesn't seem to be in any hurry, but I wanna get the loan paid back asap...
 
Who is your mortgage offer with? Most offer schemes whereby you can draw down the deposit so you could do this and use the funds to repay the loan.

Alternatively you could swap the loan to a cheaper rate (with, say, your Credit Union) or push for the mortgage to close - assuming the house is ready - and pay back the loan with the balance. Whatever you do, do not miss any payments; it's rare but lenders can and do do additional ICB searches prior to cheque issue.

Sarah

www.rea.ie
 
Thanks for that Sarah. That's exactly what we want to do - drawn down enough to pay back the loan. The mortgage is through EBS so I'll get on to them.
Thanks again!
 
Let us know how you get on.

Both myself and another recent poster here are in the same boat. EBS wont advance the 10% to clear the loan they made us take uout for the deposit. This seems to be policy.
 
Quick update:
I've discovered it would theoretically be possible to draw down a 'stage payment' to pay back the loan as the value of the house (as it now stands) is greater than the amount I want to draw down. Broker thinks the mortgage provider might be a bit iffy about it for some reason.
Turns out anyway that the loan repayment isn't due til December (phew!) so I can wait and draw down the money for the deposit at the same time as the next stage payment.
Thanks for all your help!
 
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