Mortgage drawdown is the final milestone in securing your new home. In Ireland, this is the point where the lender releases the funds and the purchase is completed. But even at this late stage, a range of issues can cause unexpected delays—or worse, prevent your mortgage from going through altogether.
Understanding what can go wrong at drawdown and how to avoid common pitfalls is key to keeping your home-buying journey on track.
In Ireland, Mortgage Protection Insurance is mandatory for most borrowers. Without a valid policy in place, lenders won’t release funds.
Common issues include:
Medical Declines: If your application is declined due to health concerns, you’ll need to seek specialist cover or exemptions, which can take time.
Incomplete Applications: Missing or inaccurate health information can result in delays or policy cancellation.
Delays in Activation: Even if approved, delays in issuing policy documents or confirming cover can prevent drawdown.
How to avoid this:
Apply for MPI as early as possible. Disclose health issues upfront, and work with your broker to explore alternatives if needed (such as waivers for joint borrowers or specialist insurers).
Just because your mortgage is approved doesn’t mean the property is automatically good to go. The lender still needs to be satisfied with the legal and structural integrity of the property.
Potential problems:
Title issues: Disputes, boundary concerns, or unresolved charges on the title can block drawdown.
Planning or structural defects: Undeclared extensions or red-flag issues from a final valuation can raise lender concerns.
Downward valuation: If the property’s value drops between approval and drawdown, the loan amount may no longer be justified.
What to do:
Have your solicitor carry out title checks early. For second-hand homes, consider a pre-purchase survey to catch problems early. Ensure planning permissions and building compliance are in order, especially for extensions or conversions.
Your lender bases their approval on your financial status at the time of application. Any changes before drawdown can trigger a reassessment.
Risk factors include:
Job loss or career change
New loans, credit cards, or financial commitments
Undisclosed debts or obligations (e.g. child maintenance)
How to prevent issues:
Avoid changing jobs, increasing credit limits, or taking on new debt until after you’ve drawn down your mortgage. Let your broker know immediately if your financial situation changes.
Your solicitor plays a crucial role in preparing and submitting drawdown documentation to your lender. Any missteps here can slow things down significantly.
Common causes of delay:
Missing or incorrectly filled legal forms
Late return of signed loan offers or declarations
Delays in registering deeds or confirming property ownership
Best practice:
Work with a solicitor who is experienced in residential property transactions and stays in regular contact with your lender and broker.
Sometimes borrowers request changes to the mortgage after approval, which can trigger a full re-evaluation.
Possible triggers:
Requesting a different loan amount or term
Disputes over the agreed interest rate or repayment schedule
Special conditions (e.g. the sale of another property) not yet met
Solution:
Stick to the agreed terms unless absolutely necessary. Make sure you fully understand any conditions in the mortgage offer and work to satisfy them well ahead of time.
Lenders must verify the source and availability of your deposit to comply with anti-money laundering regulations.
Potential problems:
Unexplained gifts: If a family member is gifting part of the deposit, you’ll need a signed gift letter and proof of transfer.
Non-traditional sources: Bitcoin or overseas funds often require extra documentation.
Timing issues: Delays in transferring the deposit or failure to show proof of savings history can hold things up.
Fix:
Be transparent with your broker from the outset. Gather all supporting documents for your deposit early, including bank statements, gift letters, and receipts of transfers.
Most mortgage offers come with conditions that must be fulfilled before drawdown.
Typical pre-drawdown requirements:
Home insurance in place and confirmed by the lender
Signed loan agreements and related documents returned
Final property inspection or certificate of completion (for new builds or renovations)
Your checklist:
✓ Confirm your home insurance meets the lender’s criteria
✓ Sign and return documents quickly
✓ Ensure all property-related conditions (e.g. BER rating, snag list) are met
Though rare, administrative or banking errors can cause last-minute panic.
Examples include:
Incorrect bank account details for fund transfer
Delays in electronic payments due to public holidays or cut-off times
Internal lender processing errors
Pro tip:
Triple-check all bank details and time your drawdown carefully—especially before weekends or holidays.
Drawdown is one of the most exciting stages of the mortgage process—but it’s also the most delicate. Even minor issues can cause delays, extra stress, or in rare cases, derail the transaction entirely.
At Mortgage Navigators, we’re here to ensure everything runs smoothly—from approval through to drawdown and beyond. We’ll liaise with your lender, solicitor, and insurer to keep things moving and step in quickly if problems arise.
Need help securing a smooth drawdown?
Talk to our team today and make sure your mortgage closes without surprises.
Article by Margaret Barrett
Managing Director at Mortgage Navigators,