Mortgage approved- but not allowed draw down for three months

Sligo22

Hi,

So Myself and my husband have had an offer accepted on our dream house earlier this week and today we received our mortgage approval- wayhay delighted

EXCEPT- the bank has stipulated a condition on the offer of a mortgage that we can't actually draw down the mortgage (i.e. they won't send the letter of loan) until the end of June End of June is when I officially finish my 12 month probationary period in my job. At the time we put the paperwork in our mortgage adviser advised as long as I provided a letter from my employer stating I would definitely be being kept on after probation it shouldn't be an issue- I'm on a permanent contract and the probationary period really is just a formality at this stage . I provided the letter no problem, but still they stipulated this condition

My question is considering the end of June is only three months away at this stage- is it actually likely to hold things up much?

In the mean can we get getting all the other paperwork in order? as in our solicitor doing all the relevant searches, checking the contract etc. ? or do they require the letter of loan to do that?

We are not in a mad hurry to move in, and I don't thing the sellers are urgently looking to move on either- I just would like to make as much progress in the meantime so once we get our official letter of loan we can get things tied up pretty quickly.

Thanks

listermint

The average purchase takes 3 months plus anyway. Tbh there is alot of legal stuff that has to occur during this time anyway.

If the seller themselves is in a chain there is another time ad.

You will just have to roll with it.

How Strange

We've just bought our house and it took 6 months to complete and that was driven by me hounding our solicitor almost daily. In my experience that condition might work in your favour as our loan offer was due to expire on the same week that we finally closed. It's a very slow process and it definitely won't be done in less than 3 months. If your loan offer with 6 months validity starts in 3 months that gives you 9 months to complete.

Sligo22

Thanks for your replies
Unfortunately they didn't give us an extra 3 months on our offer despite enforcing that condition- it expires 10th sept. Thats why I'm a little worried- I want to make as much progress before end of June as possible, so hopefully we can draw down pretty quickly after I fulfill the condition. I just hope bot having the official letter of loan for 3 months won't hold things up too much in the meantime- I mean the solicitors don't strictly NEED it do they to be issuing contracts and doing the relevant searches and checks?

How Strange

We had to show proof of loan offer before contracts were issued. We also gave a booking deposit when we made an offer. But issuing contracts mean little in itself. It's just thenstart of the process in my experience. You can ask your solicitor to explain the situation to the vendor solicitor and ask for contracts to be issued and get all the different parts (boundary etc) checked and you'll be ready to close when you get your loan offer approval. The time from issuing contracts to closing is about 3-4 months so it shouldn't be seen as a problem in itself.

mirrorwall14

We bid first week of August. Moved in last week of September. The seller may not be willing to have a very specific delay of minimum three months