When stepping onto the property ladder in the UK, the release of mortgage funds is one of the critical stages in the process.
It is also the final step that completes the property purchase, and its timeline can vary based on several factors.
Between all the solicitors, lenders, and surveyors involved in the process, it is highly likely that some mortgage releases will take longer than expected.
Depending on the lender’s policies and procedures, and complications that arise during the application review process, you may find yourself waiting longer than anticipated for your funds.
So, how long does it take to release mortgage funds?
In general, most mortgages are released within 3 to 7 days of agreement. This is the duration it takes for the mortgage funds to be approved, released, and transferred to your solicitor’s account. It is then ready to be forwarded to the vendor as you proceed with finalizing the property purchase.
In this article, we will guide you about the various aspects of releasing mortgage funds, factors that can influence the timeline, and valuable tips to expedite the process while ensuring a smooth and successful transaction.
How Long Does It Take to Release Mortgage Funds?
When you’ve got your mortgage offer ready and accepted, the lender will usually take 3 to 7 days to release the funds. But there’s a long process that takes place behind the scenes before you can receive your mortgage funds.
The process of releasing mortgage funds begins when the lender reviews and verifies all the documents submitted as part of your application. This includes verifying details such as your credit score, income, savings account statements, etc.
The review should include a valuation survey from an independent third-party to assess the property value.
Anti-money laundering (AML) legislation in the UK requires lenders to verify that the funds come from legal sources, which adds another layer of complexity and paperwork.
Once all the documents are verified and accepted, the lender will confirm your mortgage offer and release the funds to your solicitor’s bank account. They can then transfer it to the vendor’s bank account as you proceed with finalizing your property purchase.
How Long can a Solicitor Hold Mortgage Funds?
It all depends on the lender’s rules. Some lenders allow solicitors to hold the funds until you exchange contracts, while others require them to transfer it immediately.
Your solicitor should provide you with a detailed timeline of when they will receive and release the mortgage funds so that you can fix a date for exchanging contracts.
If you do not use these funds entirely or parely, the solicitor will have to return the remaining funds to the lender.
How Long Do Specific Banks Take to Pass on Mortgage Funds?
Each lender has its own processes and timelines for releasing funds. Generally, most lenders take around 5-7 working days to process the documents and pass on the funds to your solicitor.
However, there are many factors that can affect this timeline such as the complexity of your application or if there is an issue in verifying any document.
In the table below you can see the typical time it takes for lenders to pass on mortgage funds.
| Bank Name | Timeframe for Mortgage Funds Release |
| Barclays | 3-5 working days |
| HSBC | 10-14 working days |
| Nationwide | 5-7 working days |
| Royal Bank of Scotland | 4-6 working days |
| Lloyds Bank | 5 – 7 working days |
| Santander | 3-5 working days |
| NatWest | 4-7 working days |
| Halifax | 8-10 working days |
Can a Mortgage Fund Be Released Before the Exchange of Contracts?
There is hardly any lender that will allow you to withdraw the mortgage funds before the exchange of contracts or completion of the purchase.
Most lenders will wait until all the legal formalities are completed before releasing the funds. This helps to protect everybody involved in the property transaction, including both buyers and sellers.
But if there’s a special requirement where the funds have to be released at an earlier stage of the property transaction, you may have to discuss it with your lender.
How can I speed up the Mortgage Funds Release Process?
While you might not be able to request funds earlier but you surely can ensure that the process is completed as quickly as possible.
To begin with, you should take all steps necessary to get your documents in order before applying for a mortgage.
This includes ensuring that you have all the paperwork in place, such as ID and proof of income. This will reduce any delays in getting your mortgage funds released.
You should also make sure that you check and follow up on the progress of your application regularly with both the lender and your solicitor. This will help keep them on track and ensure that the entire process is completed in a timely manner.
In addition, it’s important to work with reliable professionals such as lenders and solicitors who have a strong track record of meeting deadlines.
This will make sure that everything happens smoothly and you can get your mortgage funds released as soon as possible.
Factors Impacting the Mortgage Funds Release Timeline
The time taken to release mortgage funds can vary depending on different factors, the main ones being:
- The type of mortgage you have chosen
- Your credit score and credit history
- How quickly documents are provided to the lender or solicitor
- If any legal issues arise in relation to the property purchase
- Your lender’s internal practices and processing times
Final Thoughts on Mortgage Funds Releasing Timelines
It is essential to understand the timeline of releasing mortgage funds so that you can plan out your purchase accordingly. If necessary, ask your lender or solicitor for a detailed timeline and make sure all the parties involved are aware of it.
Once everything is finalized, you should be able to receive the mortgage funds quickly and without any delays. It is important to work with professionals like solicitors and lenders who are aware of the changing regulations and can move quickly to ensure a smooth process.