Bankers Draft or Chaps on exchange

JustTakeAllMyMoney

In the end it was ok, the draft was guarentted but the funds dont clear for upto 5 days, fortunatly the deposit paid by my buyer was avaliable so used that. For completion my solicitor wants the remaining balance to be CHAPS to her the day before. Even the estate agent sales manager thought it a bankers draft would clear straight away, and they are not a mickey mouse out fit. The last time I did it Im sure the bankers draft cleared straight away but that was back in 2001.

The nice things about it (not :mad: ) is the money comes straight out of my account when they give me the draft, which considering the 5 days to clear means the bank is getting the interest on it and then charge me for £12 for the privilage.

Mikeyorks

JustTakeAllMyMoney wrote:

The nice things about it (not :mad: ) is the money comes straight out of my account when they give me the draft, which considering the 5 days to clear means the bank is getting the interest on it and then charge me for £12 for the privilage.

Indeed. Any draft or counter cheque has the same effect. When you consider the number of people who draw large sums of money from deposit accounts - via counter cheque. Then send them onto their Acct - to send them on to HMRC to pay their SA tax (taking a couple of weeks - overall) - the Banks / Bldg Socys simply rake it in

It's not a sensible way to handle your money.

claire123

hi sorry to hijack this thread but i have a probably very stupid question! we are in the process of buying a property hopefully. At the moment our deposit is split between 2 accounts as i have used my isa allowance for this year. Do i need to move all the money into my current account or can i give the soliciter 2 bankers drafts? i know i can obviously move the money out of the isa but i won't be getting as much interest on it then and every penny helps!

nmiah786

claire123 wrote:

hi sorry to hijack this thread but i have a probably very stupid question! we are in the process of buying a property hopefully. At the moment our deposit is split between 2 accounts as i have used my isa allowance for this year. Do i need to move all the money into my current account or can i give the soliciter 2 bankers drafts? i know i can obviously move the money out of the isa but i won't be getting as much interest on it then and every penny helps!

Dont see why not but both drafts will have to clear and it might not be on the same day!!!

xela_17

And you'd have to pay twice for two bankers drafts - I think they are about £10-15 each, so you should weigh up this cost over the interest you would be losing.

claire123

thanks for the replies next stupid question coming up! Most of the deposit is in my isa which is just a pass book account so i can ask them for a cheque made payable to the soliciter so no charge. what is the difference between this and a bankers draft? i have used this in the past for rental deposits and have been fine. Everything is still up in the air so don't want to do anything till the mortgage offer comes through. They are still waiting for the surveyor to confirm how much of property is residental. 2 weeks and still nothing:mad: quite stressful as we are renting the property we hope to buy and our tenancy is up at the end of May so if it all falls through our lanlord could kick us out in 2 weeks anyway off track excuse my ramblings:o

Mikeyorks

claire123 wrote:

thanks for the replies next stupid question coming up! Most of the deposit is in my isa which is just a pass book account so i can ask them for a cheque made payable to the soliciter so no charge. what is the difference between this and a bankers draft?

In practical terms - there's no difference beween a counter cheque and a Draft. Both represent 'guaranteed' sums - in both cases your money is taken from your account as you get the cheque / Draft - and in both cases they are not liquid funds until after they have been through the Clearing cycle.

But - I think your solicitor should be the arbiter as to how he / she expects the funds. So, personally, I would ask? Too much at stake to get it wrong?