Upvote:3
Is it OK for me to make this transaction without jeopardizing my chances of getting a Visa?
YES
Can the British embassy check records for individuals after submission of an application? Or do they just review the statements submitted (If they do then they would not know why I pulled the funds)
YES, they can and sometimes do
The ECO does not expect that your account should be static while waiting for a visa approval. Life is dynamic and that is how it should be. You are not going to be denied a visa because after application you had to move some money.
Read Should I submit bank statements when applying for a UK Visa? What do they say about me? and if you have no red flags mentioned, you are fine.