Cheque or Bank Transfer?

gillianb_2

Hiya

I've just checked my mail to find a reply from my solicitor about our mortgage deposit and since he's not avail till Monday could really do with some questions being answered if you can. He has said I can pay by cheque which is free and can take 7 days to go through - the other opt is a bank transfer which will require me to get proof of deposit and I may also get charged for the £5k transaction? Why is this I'd think the money being passed over electronically would be a heck of a lot safer than a cheque would it not? Theres no problem in getting it but what's the proof of deposit for if it's coming directly from our account? Only thing I can think of is if the moneys came from a big cash payment put in but surely this would be the same with a cheque? I'm with Bank Of Scotland the mortgage is also with BOS my boyfriend has the monies in his Lloyds TSB ISA which we'd be taking the deposit from if it makes any diff? Confused can someone just clear this up for me so I can maybe get a sleep when I finish work :rotfl:

gillianb_2

Oh and how much is the transfer likely to cost us? Think we'd be best off going into Lloyds getting them to write up a cheque and processing it 7 days in advance?

opinions4u

Why is this I'd think the money being passed over electronically would be a heck of a lot safer than a cheque would it not?

I'm assuming the solicitor is referring to the charges your bank makes for certain withdrawal types. CHAPS has a manual process involved.

Lloyds TSB would probably charge £20 for a bankers draft or £30 for a CHAPS. Bank of Scotland have similar charges (although a bankers draft withdrawn from a savings account may be free). I suspect a bankers draft would require you to meet the solicitor's ID requirements in a different way to the cheque.

If you transfer the funds to a personal account and pay by cheque, then you will avoid those charges, but the solicitor will need the funds earlier so you'd miss out on a little interest. Another free option may be BACS - but you need to ask the solicitor if they are happy to receive money this way.

Lloyds TSB Charges (page 9)

BoS Charges

gillianb_2

Thankyou

Lovely will pop in to both our banks on Monday to see how much for every opt and obv go for the freebie.

What is BACS?

opinions4u

gillianb wrote: »

Thankyou

Lovely will pop in to both our banks on Monday to see how much for every opt and obv go for the freebie.

What is BACS?

It's an automatic transfer from your account to somewhere else. Usually, but not exclusively, set up and executed by an account holder via online banking.

Takes 3 working days to get from A to B whereas CHAPS is same day.