What Happens at Mortgage Completion?

If you've been through the offer, the survey, the mortgage application and the exchange of contracts, completion can feel like it should be straightforward by comparison. In many cases it is, but it's also the stage where things can go wrong at short notice, and understanding what's actually happening on completion day means you're less likely to be caught off guard if something doesn't go entirely to plan.

Exchange and Completion Are Not the Same Thing

This is worth clarifying because a lot of buyers treat exchange as the finish line. Exchange of contracts is the point at which the sale becomes legally binding: both parties are committed, a completion date is set and pulling out carries financial consequences. Completion is the day the money moves, the keys change hands and you legally become the owner of the property.

The gap between exchange and completion is usually anywhere from one to four weeks, though it can be longer if both parties agree. During this period your solicitor or conveyancer is preparing the completion paperwork, your lender is finalising the mortgage funds, and the outstanding balance on the purchase price is being assembled ready to transfer.

What Happens on Completion Day

On the day itself, your mortgage lender sends the funds to your solicitor, who adds your own contribution and transfers the full purchase price to the seller's solicitor. Once the seller's solicitor confirms they've received the funds, they authorise the release of keys, usually through the estate agent.

This sounds simple, but the timing matters. Bank transfers between solicitors can take time to clear, and if the chain is long, each link needs the funds to arrive before they can pass them on. This is why completion days can sometimes stretch into the afternoon even when everything goes smoothly. If you're in a chain, the best advice is not to book a removal van for first thing in the morning.

What Can Delay Completion

The most common causes of completion day problems are funds not arriving on time, issues identified in final searches, a seller not being ready to vacate, or a problem earlier in the chain that creates a delay which ripples through. In a worst-case scenario, completion can be pushed back to the following day, which has implications for anyone whose moving arrangements have already been booked.

Your solicitor should keep you informed throughout the day, but it's worth having a direct line to them rather than relying on email on what is, for most people, one of the most stressful days in the process.

After Completion

Once the keys are in your hand, the property is yours, but there are still things happening in the background. Your solicitor will pay any Stamp Duty Land Tax owed on your behalf and register the change of ownership with HM Land Registry. This registration can take several weeks or even months, particularly if the Land Registry is experiencing backlogs, but it doesn't affect your ability to move in and live in the property.

Your mortgage lender will also set up your first direct debit payment around this time, and it's worth checking when your first payment is due so there are no surprises on your statement.

A Final Note

Completion is the culmination of what is, for most people, the biggest financial transaction of their lives. The more you understand about what's happening and when, the more in control you'll feel on the day itself. If you have questions about the process or anything isn't clear, your solicitor and your broker are both there to help you through it.

I'm happy to walk through any part of the completion process with you if you'd like to talk it through before your date arrives. Get in touch and we'll go from there.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Barry, The Mortgage Network - Helping you make confident decisions and plan a mortgage that works for you.