Financing final Drawdown

Molb

We are now at the stage where our final drawdown is left. This drawdown is quite a substantial amount, almost 25%.We have quite a bit of work to complete, but we will have enough left in our mortgage to cover all of this.
My question is, how do you finance all the last jobs, 2nd fixes, finish etc if you can't drawdown your final payment? Do people get bridging finance? Mortgage crowd will release funds once house is finished, but how do you finish without the funds?
Appreciate any advice. Thanks

Rabbo

The final drawdown should never be as high as 25%. It should have been structured better, most banks allow a final drawdown of min 10% which is the funds you would typically have anyway as a deposit. I'd imagine it could be difficult to get bridging finance in circumstances like that. One of the benefits of having a contractor for a build is you don't have to pay him until after each portion of work is done which usually coincides with the mortgage drawdowns. Can you talk to your bank and see if they'll split the final amount into two drawdowns, 15% and then 10%?

Molb

At the start the mortgage lenders had said 20% of cost will be held has final drawdown (apologies not 25%).
We are a self build so perhaps thats why. Its just going to hold things up now trying to sort finance to pay to complete house. Maybe we should chat with them and see.

Rabbo

I've never seen anything higher than 10% so it seems odd. It's a complete nonsense to force self builders into a situation where they have to find bridging finance just to complete their build and draw down another loan.