Alliance & Leicester - Telegraphic Transfer

midge31

Want to have a quick moan about the above, not sure if it's just the A&L, but our Solicitor seems to think it's odd.

Due to complete on the 30th of this month, and the Solicitor has just rung to say that the A&L will only send the funds via TT and not BACS. They will also only guarentee that the funds are there by close of business, and not when they're needed. Because of this, we're now having to get the funds released on the Friday before (it's a Bank Holiday weekend, and we're moving on the Tues) and in turn pay an additional 4 days interest!!

Anyone know why the A&L don't use BACS to send the money, as surely using TT causes more problems than it's worth.

lisyloo

As far as I know all lenders use TT.
Doesn't BACS take about 4 days, so you can't gurantee when the money will arrive.

dunstonh

Telegraphic Transfer, also known as CHAPS, it the usual way money is transferred with house purchases. On average, it takes 30 minutes for the transaction to be received and processed at the other end (although can take longer during lunch breaks). BACS is too slow and the transaction can be recalled meaning its not true cleared funds. CHAPS cannot be recalled.

They cannot guarantee that the funds will be there at a specific time because even if they send it at 9am, the receiving bank may not finalise the payment until later in the day. They should process it at the earliest possible opportunity but there is always the risk that may not happen and A&L cannot issue any guarantee because of that. In reality, you wont have a problem.

Using BACs would allow a transfer to be made which could be recalled the next morning. I'm surprised that a solicitor would consider that acceptable. In addition, an incorrect number would add a further days delay whereas an error like that on CHAPs would be corrected same day.

I am more surprised your solicitor finds it odd.

MarkyMarkD

I can't see why you think BACS would be better - you would have to have got the funds sent on about Wednesday to guarantee arrival on the Tuesday - so that would be 6 days' interest. On the amount of a mortgage advance, it's infinitely preferable to have the speed and guaranteed same day delivery promised by a telegraphic transfer.

AuntyJean

dunstonh wrote:

...................

I am more surprised your solicitor finds it odd.

So am I. Are you sure your solicitor is knowledgable about conveyancing?

Scott

Funds are ALWAYS remitted by CHAPS/TT. Your solicitor isn't playing it straight on this one (i.e. they will have the funds over the weekend in their suspense account).

Also, your solicitor really shouldn't be holding funds for that period of time, as far as I know that's longer than Law Society rules permit.