Have you decided to buy your own property thanks to a mortgage? Then you should also know that there are 2 types of mortgage loan disbursement, namely one-time and gradual. How do they differ?
How does the mortgage process work?
Even if you have met all the conditions for arranging a mortgage and the bank has approved your application, this does not mean that you can start drawing down the funds straight away.
First of all, you may be asked for a purchase contract for the property, its insurance and vindication in favour of the bank, proof of payment of part of the price from your own resources, a proposal for the entry of a lien into the Land Registry and often also the establishment of a current account with the mortgage provider.

Single vs. gradual mortgage drawdown
The drawdown is cashless in two ways.
- For a single drawdown, the bank releases the funds in one transaction. This is most often the purchase of real estate, settlement of property between family members, or refinancing a mortgage.
- As the name implies, a gradual drawdown of a mortgage takes place gradually, in several set transactions. This method is mainly used for the construction or renovation of a property (continuous reimbursement of invoices for work carried out).
Did you know that with a gradual drawdown, you also need to deal with the mortgage drawdown? As long as you do not draw down the full amount specified in the loan agreement, you only pay interest to the bank, and the annuity repayment only occurs after the drawdown?