Bankers Draft - An explanation and mortgage assistance available...
A Bankers Draft is essentially a cheque drawn on the bank itself, the funds therefore being considered much more secure than one drawn on the individual's own bank account.
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So, here we take an in-depth look at the Bankers Draft and where it comes into play within the Mortgage process, and provide details of the available mortgage help we can offer.
Table of Contents:
What is a Bankers Draft?
'So, exactly what is a Bankers Draft?' you may well ask! Well as we briefly touched upon during the introduction, a Bankers Draft (or Bank Draft as they may be referred to as) is a cheque that is drawn on the bank itself, so the funds are typically looked upon as being much more secure than those drawn from a persons own bank account, which may not be honoured.
Bankers Drafts, like cheques also, are often used in circumstances where cash would be inconvenient and undesirable. Banks and Building Societies usually charge a small administrative fee for issuing a Bankers Draft.
How does a Bankers Draft work?
So, a Bankers Draft draws upon funds directly from the bank itself, as opposed to a persons actual bank account. Of course, before issuing a banker's draft, the bank will ensure that there are adequate funds in your own account to back-up the draft. Once the Bankers Draft has been issued by the bank, the customer's account is usually debited immediately.
Although the bankers draft will not be considered as "cleared funds" by the receiving bank, it's the next best thing to it! And for the recipient of the bankers draft, they know they can rely on the draft to be honoured in due course.
Why have a Bankers Draft?
At the end of the mortgage process, Solicitors will need to know they can rely on the monies they are calling in from the Mortgage Lenders in order that they can complete the house purchase or remortgage on behalf of their clients. Generally, Solicitors will request funds to be forwarded to them either by Bankers Draft or Telegraphic Transfer to be with them by the day prior to the completion date, in order to satisfy themselves that the appropriate funds will be available at the open of business on the day of completion.
How long does a Bankers Draft take to clear?
A Bankers Draft will usually take around the same amount of time a regular cheque will take to clear, typically somewhere in the region of five working days.
Can Shire Direct arrange the legal work on my behalf when it comes to a Mortgage or Remortgage?
Obviously, the legal work for a mortgage or remortgage has to be undertaken by a qualified legal expert, and that is the responsibility of a Solicitor.
However, if you don't have a Solicitor, and would like details of our panel solicitor, please don't hesitate to Contact Us. In the case of a remortgage, we can arrange an all-encompassing fixed fee arrangement at a very competitive price. For sale and purchase transactions, similarly fixed fee legal costs are available, to which VAT is added plus disbursements.
Further Mortgage and Remortgage help available
So, if you're thinking of buying a property, or remortgaging your present home, and you require some help and advice, please remember our qualified mortgage advisors are available to discuss the options open to you. Naturally, we'll carefully assess your circumstances, needs, requirements and aspirations to come up with the most appropriate solution for you.
You can enquire online at anytime, or why not give one of our professionally qualified Mortgage Advisors a telephone call. They are available until 10.00pm everyday (including weekends) on Freephone 08000 282 281 and will be delighted discuss your requirements and provide you with an in-principle decision, naturally without any obligation. We think that you will find our approach and service to be professional, friendly, helpful and unstuffy.
We hope we've managed to explain the Bankers Draft and answer any initial questions you may have had with regards to them. Don't forget there is much more information throughout the many pages on our website relating to Mortgages and Remortgages, and if you think we can help you, we'd most certainly love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.