Drawing down on loan questions

Lemlin

I'm not sure if this should go here (construction and planning) or in banking. Anyway, I thought maybe here would be best as people here would know about drawing down on loans for building. I've been sanctioned by the bank to build in the next six months. The sanction started from the 27th of August so I've six months from then to have 20k worth of work done the woman from the bank said.

However, my planning still isn't back. It should only take about another four weeks (county council asked for further information) but is there any way of getting around rule of having to have 20k worth of work done by the end of February? I don't fancy starting the foundations in the Winter as I think it'd be too wet.

Also, can I fix the loan before I draw down or do I have to draw down? I opted for variable but am thinking maybe I should fix now.

muffler

This is not the best forum as your query contains 2 points, one of which may only be slightly relevant here.

Moved from Construction & Planning

Lemlin

No worries. Thanks muffler.

mr_edge_to_you

This sounds strange. Firstly, have you actually signed the formal mortgage offer that your bank would've sent to your solicitor. From my own recent experience I can't see how the bank would offer mortgage finance to you without having been formally given permission. We had to submit a copy of granting notification to the bank as part of the mortgage. I'm suprised that your bank and solicitor have engaged in this mortgage agreement without pp in place.

Lemlin

mr_edge_to_you wrote: »

This sounds strange. Firstly, have you actually signed the formal mortgage offer that your bank would've sent to your solicitor. From my own recent experience I can't see how the bank would offer mortgage finance to you without having been formally given permission. We had to submit a copy of granting notification to the bank as part of the mortgage. I'm suprised that your bank and solicitor have engaged in this mortgage agreement without pp in place.

They have granted it on the condition that I get the PP. The girl I spoke to in the bank said the six months started from the letter of offer though.

The Rooster

When I built my house the bank (EBS) were very flexible with drawdowns and timing. Although they never gave me deadlines as to when I had to have a specific amount of work done by.

Not sure what the logic is behind the 20k of work must be done.

In your circumstances I think I'd wait until I got PP, then arrange a meeting with them. I can't imagine they'd have problems with a delay because of weather etc, unless there's some other circumstances we don't know about.

As for interest rates, my understanding is you can change from variable to fixed at any time, but you probably can't fix a rate until you actually drawdown.

Lemlin

The Rooster wrote: »

When I built my house the bank (EBS) were very flexible with drawdowns and timing. Although they never gave me deadlines as to when I had to have a specific amount of work done by.

Not sure what the logic is behind the 20k of work must be done.

In your circumstances I think I'd wait until I got PP, then arrange a meeting with them. I can't imagine they'd have problems with a delay because of weather etc, unless there's some other circumstances we don't know about.

As for interest rates, my understanding is you can change from variable to fixed at any time, but you probably can't fix a rate until you actually drawdown.

I don't want to chance messing around with the bank though because it was hard enough getting the loand the first time - they must us jump through hoops eg. P60 wasn't enough, I had to give them all 12 pay slips for last year!

I think the agreement is you have to draw down within 6 months or apply again because the sanction will have passed. There's no way I want to have to go through applying again.