If you’re in the process of buying a home, you’ve probably wondered: “Does the mortgage lender release money before completion?” In short, no—mortgage funds are not typically paid out until completion day. However, understanding the timeline and structure of a mortgage offer, and unlocking that funding, is crucial for a smooth property transaction.
Let’s explore what a mortgage offer includes, when it can be “drawn,” and how it interacts with the conveyancing process.
What Is a Mortgage Offer?
A mortgage offer is the official confirmation of the lender’s commitment to lend you money—subject to conditions. Key components include:
- Loan amount and maximum loan-to-value (LTV)
- Interest rate and term
- Conditions precedent (e.g., survey report, satisfactory legal title, life insurance)
- Repayment terms (repayment or interest-only)
It’s a binding offer, meaning the lender has reviewed your application and done the necessary checks—but crucially, it does not mean the funds have been released.
Offer vs Funds: What’s the Difference?
- Mortgage Offer: A written promise from your lender outlining the terms of the loan.
- Mortgage Drawdown: The actual transfer of funds into your solicitor’s account (not yours) on completion day—when that money is legally required to Finalise the purchase.
Having a mortgage offer “in hand” is vital before exchange of contracts but does not mean money is sitting in your account.
Sequence: Offer, Exchange, Drawdown
Here’s the typical sequence in a mortgage-backed property purchase:
1. Mortgage Offer Received
Your solicitor reviews it for accuracy and conditions.
2. Satisfy Pre-conditions
Fulfil lender conditions like acceptable valuation, legal searches, insurances, or any leasehold-related documentation.
3. Exchange of Contracts
You commit. Deposit is paid—mortgage funds not yet released at this point.
4. Completion Day
Your conveyancer:
- Requests final mortgage drawdown from the lender
- Receives funds, holds them securely
- Transfers full balance (mortgage + deposit) to the seller’s solicitor
- Legal title transfers at this point
5. Post-completion
Funds are allocated between mortgage redemption (if applicable), completion payments, and Land Registry/stamp duty filings.
Why the Offer Comes Before the Drawdown
- Risks & Protections: The lender needs to be confident in the full legal package before committing to release—title, searches, insurances are all assessed during the pre-exchange stage.
- No Pre-Exchange Risk: Funds aren’t disbursed before contracts are exchanged to avoid financial absence if the deal falls through.
- Lender’s Control: The lender conditions their liability on satisfactory completion—not on unsecured early payment.
Common Conditions to Watch Out For
Mortgage offers often come with requirements that must be completed before drawdown, such as:
- A valuation report confirming the property value
- Insurance arranged from exchange (buildings coverage, life insurance)
- Leasehold docs reviewed (e.g., service charge statements, lease length)
- Approved surveyors’ remarks or structural surveys
- Satisfactory answers to legal enquiries raised during conveyancing
Your solicitor will need to confirm compliance with these conditions before requesting drawdown.
Timings: How Long Between Offer and Completion?
The period between a mortgage being offered and the lender releasing funds depends on several factors:
- Pre-completion solicitor work: reviewing offer, searches, legal checks
- Chain length: your seller’s situation and onward purchase
- Couriers and banking cut-offs: some lenders only release funds in batches or mid-morning
- Valuation turnaround: standard or full structural surveys
On average, expect a 2–8 week window between receiving the mortgage offer and completion day.
What Happens If Funds Aren’t Drawn by Completion?
If funding doesn’t arrive in time, a few issues can arise:
- Delayed completion: could cause frustration for seller and buyer—contracts may include penalties.
- Potential additional costs: legal fees, interest, or mortgage re-offer fees.
- Contingency planning: your solicitor will have terms in place to request lender urgency or pause legal formalities with your instruction.
Mortgages are structured to prevent this sort of error—your solicitor keeps close tabs on drawdown timing.
How to Keep Things on Track
Here’s what you and your solicitor can do to ensure the drawdown happens smoothly:
- Apply early and avoid switching lenders late in the chain.
- Submit a Mortgage in Principle to flag early funding capability.
- Provide documentation quickly—income proof, insurances, ID.
- Ensure preference for mortgage-approved solicitors to speed legal checks.
- Track lender requests and deadlines and report progress regularly.
Final Takeaway
To answer the question plainly: A mortgage offer cannot be drawn before exchange or completion. The lender provides a conditional promise, but funds are only released after contracts are exchanged and on completion day, when the transaction is legally binding and the seller’s solicitor receives clear proof of funds.
Knowing this distinction and preparing accordingly gives you control, confidence, and clarity—so when completion day arrives, everything settles smoothly.