Ulster Bank Query

1st Time Buyers

Ok so I am in the middle of buying my 1st house. I have put down a 5000euro holders fee on the house. I am getting the other 8000euro of the deposit from family.
I lodged the cheque today but because of the amount they said it'd take 6-8weeks to clear.
By this time I'll no longer be able to draw the mortgage as it expires.
What do I do?
Can I draw mortgage, do all the paperwork etc and then pay deposit?
I cant believe its going to take so long for the cheque to clear. HELP

killers1

1st Time Buyers wrote: »

Ok so I am in the middle of buying my 1st house. I have put down a 5000euro holders fee on the house. I am getting the other 8000euro of the deposit from family.
I lodged the cheque today but because of the amount they said it'd take 6-8weeks to clear.
By this time I'll no longer be able to draw the mortgage as it expires.
What do I do?
Can I draw mortgage, do all the paperwork etc and then pay deposit?
I cant believe its going to take so long for the cheque to clear. HELP

What country is the cheque you lodged drawn from?

1st Time Buyers

The cheque is from Barcleys in the UK and Im in Ireland

killers1

1st Time Buyers wrote: »

The cheque is from Barcleys in the UK and Im in Ireland

Give the person gifting you the money your bank details and ask them to send it electronically directly from Barclays. Available funds will be in your account in a day or two. There may be a small charge but it will cut out the delay.

1st Time Buyers

The person that gave me the money is an elderly relative so this sadly is not an option. Im thinking maybe that 6-8 weeks is just a formality of them covering themselves

BuffyBot

It may clear sooner, but yes non-Irish cheques will take much longer to clear due to the level of fraud that occurs with them.

Jim2007

1st Time Buyers wrote: »

The cheque is from Barcleys in the UK and Im in Ireland

Clearing cheques internationally always takes longer.... any change that UB would give you a temporary credit facility until the cheque clears?

Fogmatic

I didn't know it was due to that, BuffyBot (there was me assuming it was the banks clinging to profitable Dickensian methods!).

Ist Time Buyers; is your relative able to able to get to the bank? Could they get a bankers draft instead, and post it to you (after cancelling the cheque, if waiting for you to refund it is a problem)?

In case you're not familiar with bankers' drafts, they behave like postal orders; you buy them at the bank (drawn from your account), and they're as good as cash at the recipient's bank; the money's available straight away, as far as I know. (I used to send drafts in sterling for UK purchases, when without a credit card).

The buyer pays a flat fee for them. It used to be about €6 here, but it's a while since I bought one, so I had a quick look at Barclays UK site, which says it's £15 for 'personal banking customers' (assuming 'International Drafts' are the same thing).
It also says 24 hours' notice is needed before collecting the draft you've bought (2 visits to the bank then, presumably). And 2 forms of ID needed on collection. (I used to buy them instantly & without ID, but maybe money-laundering regulations have now got in the way of that).

BuffyBot

I didn't know it was due to that, BuffyBot (there was me assuming it was the banks clinging to profitable Dickensian methods!).

Much as we might like to blame them for many things, in this case it actually is as it seems. Foreign cheques (and the associated fraud which takes place) is a *huge* nightmares for the banks, not just here, but across the board.

msshono

As far as I am aware, a bank draft drawn on a UK bank will take every bit as long as a cheque...it's still a paper payment that needs the same checks for Money Laundering purposes and goes through the same clearing time. So don't go getting yer relative to go to the bank for a draft just yet - check with UB first.

Best thing would probably be for your relative to go to their bank and fill out a form to arrange an electronic payment to your account - they may need your IBAN & BIC/Swift code (usually found on your bank statement or ring the bank to get them).

Be aware if your relative puts a stop on the cheque and its returned unpaid to your account you will probably incur an unpaid fee (€25 possibly, again check with UB).

unclebill98

Contact the branch you lodged the chq in.

You should have been asked to have the chq "sent on collection" This would increase the clearance time dramatically. They may have done this for you if the amount if large and you dont often receive such a lodgment. 5% of Chq's sent like this can still take up to 6 weeks but normally arrive much sooner along with a fee.

Fogmatic

On reading msshono's comment, my experience of bankers' drafts must be well out of date - sorry!
When we used to run a business in the UK, sometimes if we had to be late paying suppliers we'd give them banker's drafts, the whole point of them being to eliminate the clearing time that cheques needed. Tmes must have changed I guess.