Insufficient funds for exchange

Your solicitor will not exchange contracts until they are in receipt of funds for the deposit. This is typically five or ten per cent of the purchase price. So you now have to come up with the readies.

They will also want proof of the existence of the full funds required at completion, hence the importance of the mortgage offer being received before exchange.

Problems sometimes arise where buyers suddenly realise their building society savings account is subject to a nasty penalty unless three months’ notice is provided.

Paying by cheque is now pretty much a thing of the past, taking several days to clear into the solicitor’s bank account.

But transferring your funds via Internet banking can fall foul of daily maximum payment limits and still requires time for funds to clear.

The big scam to watch out for is when fraudsters intercept emails from your conveyancers. So if you get an email saying that their bank account has suddenly changed (even though your solicitors’ name is the same) then be sure to check with them before paying. Even then, try transferring just £5 initially to make sure it goes into the correct account.

Payment can also be made by banker’s draft, for which the bank charges a sizeable fee, or by telegraphic transfer of funds (TTF), for which there is also a fee. When you take the potential loss of interest into account, an instant TTF is often the cheaper option.

If you need the money the same day try using CHAPS (Clearing House Automated Payments System) – again, paying a fee of about £70 may work out cheaper than losing interest on a large amount of money.





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More last minute disasters – and how to save the day


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