Paying Mortgage Deposit

sum1

Hi everyone, i have tried searching the forum and can't find an answer so any help would be great.
I'm a FTB and in order to exchange i have to pay my deposit to the solicitors who then hold that money until completion.
My question is can i pay the deposit by card or will it have to be by cheque as i don't want to have to wait until the cheque clears before we can exchange.
Many thanks for your time.

rach29

I think it unlikely that your solicitor will accept a card payment, but there's no harm in asking. Alternatively you could pay by bankers draft or Chaps payment but both of these would attract a charge. Why the worry about waiting for the cheque to clear?

xlt_hunter

could it be the case that your using a Credit Card?

indiegirl_2

I completed my FTB a few weeks ago, and we paid our solicitors by Bankers Draft - the charge was nothing compared to the amount of the deposit, and it's pretty much like handing the cash over to your solicitors.

If the solicitors are going to "hold that money until completion.", then assuming that you've not exchanged yet, the cheque will have cleared long before the completion date comes around...

richgirl

sum1 wrote:

Hi everyone, i have tried searching the forum and can't find an answer so any help would be great.
I'm a FTB and in order to exchange i have to pay my deposit to the solicitors who then hold that money until completion.
My question is can i pay the deposit by card or will it have to be by cheque as i don't want to have to wait until the cheque clears before we can exchange.
Many thanks for your time.

I paid by bankers draft, they never game the option of a card.

suki1964

You pay your deposit either by a bank draft or a cheque issued by the bank/building society

mancitychick

If you are payin by credit card could you not ask your credit card provider for some credit card cheques, then use these. But credit card cheques usually attract the same interest rate as there cash withdrawal rates - i.e. v.high interest rate!

Meeten

CHAPS is probably the fastest form of money transfer without you physically taking a pile of cash to the solicitor.

Banks normally charge £20-30 for the priveledge ....

rich94

As far as I know so long as you do not 'borrow' the money which includes using a credit card you can use any method you choose so long a your solicitor has cleared funds at the time of exchange.

This would therefore give you the options of cheque a week or so in advance, bankers draft or CHAPS transfer or a big bundle of cash on the day (bearing in mind a CHPS transfer is not guaranteed to arrive until 1700 the same day.

The reason that you may not use a credit card is that any lender who gives you money with which you fund a property purchase has a call over that property until the money is repaid even if it is not a mortgage, and because of this your mortgage provider will not like somebody have a say over their security.