How does taking out a mortgage work?

The money from the mortgage can only be taken out in cashless form, which means that the bank will transfer part or all of the agreed amount to the bank account of the seller or, for example, the supplier of the construction work or materials. The drawdown period for a purpose-built mortgage varies depending on whether you use the money to pay the purchase price of the property, finance the construction of the property, renovation or self-build.

If you are buying an existing property, the bank will transfer the money to the seller's account or to the solicitor's escrow at the same time. When a property is being renovated, a property is being constructed, self-build or reconstruction, the bank releases the money gradually. If you have arranged a non-purpose loan (American mortgage), you can use the money for anything. In this case, the bank sends all the money to the specified bank account at once.

How much time do I have to take out a mortgage?

If you get a mortgage, you also have to draw it down within a certain period of time. When you buy a property, you usually have 12 months to transfer the money to the buyer, which is plenty of time. For example, people who have decided to build a house on their own may have a problem with the money running out on time. Unexpected construction complications, late delivery of building materials or even the vagaries of the weather can extend the construction period. Already when choosing a mortgage, think about the budget and timetable for construction and ask about the terms and conditions. If you are renovating, building a property or building with your own hands, you have 24 months from the signing of the loan agreement to use up the entire mortgage. Because we know that everyone has different ideas, we try to be as accommodating as possible in this respect. If this is possible in your case, we offer an individual drawdown plan.