As an aspiring homeowner going through the process of getting a mortgage, one of the most common questions is “how long does it take for the lender to release the mortgage funds?” This is an important question, as having access to the mortgage funds in a timely manner is crucial for completing your new property.
At Clarity Simplicity, we want to provide clarity on the mortgage process so you know what to expect when applying for a mortgage to buy your dream home. In this comprehensive guide, we’ll explain:
- Why lenders need time to release mortgage funds
- The typical timeframe for releasing funds
- If the process can be expedited
- Tips for a smooth mortgage process
You can get mortgage advice from our solicitors and buy a property through it. Whether you’re a first-time buyer or an experienced homeowner, read on for a detailed look at what’s involved when a lender releases mortgage funds and how long it takes.
Why Lenders Need Time Before Releasing Mortgage Funds
After you submit your mortgage application and it gets approved, you might think the lender would release the funds right away – but it’s not that simple. There are important compliance processes the lender must complete before funds to be released.
Primarily, UK mortgage lenders are legally required to perform anti-money laundering and fraud checks under Know Your Customer (KYC) regulations. This involves verifying your identity, seeing if funds are available for the deposit and other due diligence to confirm the mortgage is legitimate and not being used for illicit purposes, and about mortgage repayments.
Additionally, conveyancing work must be finished, including having a valid mortgage offer and signed contract in place. The lender will only release funds once these prerequisites are met to ensure everything is in order before transferring such a large sum.
So while it may be frustrating to wait, understandable safety protocols are in place for releasing mortgage funds that the lender cannot bypass. The wait is an inevitable part of the process. The funds are released only after the completion of this process.
How long does it take for Releasing Mortgage Funds?
The exact timeframe for releasing mortgage funds varies between lenders, but most take 3-7 working days. Some key steps in the typical process:
- Day 1: Your conveyancer requests the mortgage funds.
- Days 1-3: The lender processes the request and completes anti-money laundering checks.
- Day 4 or 5: The lender approves the release of funds.
- Day 5-7: The mortgage funds are transmitted to your solicitor’s account.
- Day 7: Funds complete transfer so are available for property completion.
Keep in mind public holidays or weekends can delay things further. The key is ensuring funds reach your solicitor’s account prior to exchanging contracts on the property.
Be aware that while rare, some lenders can take 10-14 working days or more to release funds if extra verification is needed. Check with your mortgage advisor for your specific lender’s average timescales.
Is There Any Way to Speed Up The Release of Mortgage Funds Needed?
Because stringent regulations must be followed, there is unfortunately no way to accelerate the lender’s process of releasing funds. The lender simply needs this time to complete anti-fraud checks and conveyancing work.
Trying to pressure or rush your lender will not speed things up. However, you can avoid delays from your side and keep things moving smoothly by:
- Providing identity and source of funds documents quickly when requested
- Ensuring your deposit is readily available in your account
- Keeping your solicitor and mortgage broker updated on any changes
- Not switching jobs, taking out new loans, or changing finances
- Following up with your solicitor to confirm timeframes
- Planning for the average 7 days needed for funds release
While 7 days may seem excessive, this is standard and out of your control. Focus on what you can control: having all paperwork ready so funds can be released on time.
Release Mortgage funds summary: Tips to get funds released
To set yourself up for the easiest mortgage process possible:
- Get an Agreement in Principle – this shows sellers you can get a mortgage in principle before viewing homes.
- Provide Documents Promptly – have needed ID and source of funds paperwork ready to send immediately to prevent delays.
- Choose a Reputable Lender – work with a lender known for quick and efficient mortgage processing.
- Use a Mortgage Broker – brokers have inside knowledge and relationships with lenders to facilitate swift approvals.
- Communicate with Your Solicitor – keep them updated on your situation so conveyancing stays on track.
- Have Your Deposit Ready – once your offer is accepted, transfer your deposit to an accessible account.
- Avoid Changes to Finances – major changes can prompt re-verification and slow things down.
- Set Proper Expectations – know it takes an average of 7 days to release funds, sometimes longer.
Contact our solicitor to understand the process to take to release mortgage funds
We hope the process it takes for mortgage funds to be released is now clear. Buying a property can be complex, but understanding timeframes sets realistic expectations. Our team is here to guide you through getting a mortgage and purchasing your perfect home. Contact Clarity Simplicity today to begin your journey!