Can You Pay Mortgage Deposit With A Credit Card?

Renatukasza · 10 Jul 2008 at 12:30

As title, we've got all the money for soliceters fees etc... and we'll have some left over but it won't be enough for a deposit, is it possible to use a credit card to pay our deposit?

Thanks

Siliconslave · 10 Jul 2008 at 12:39

pretty sure you can't legally pay for credit with credit... from memory you have to actually transfer the deposit cash by wire/cheque.

You would have to go with a lower % deposit (if they'd give you the mortgage with one) or borrow more to cover the associated fees (i'm sure some places offered us this... although again you may have a hard time finding somewhere in the current climate)

Dolph · 10 Jul 2008 at 12:46

You can pay the fees by card normally, but not the actual deposit.

Renatukasza · 10 Jul 2008 at 12:48

Thanks for the help guys

Is it possible to transfer money from a credit card to a normal account(£2300/Halifax)?

Stinky · 10 Jul 2008 at 12:49

there are ways around it

people have done it before

Renatukasza · 10 Jul 2008 at 12:50

And these ways would be?

jamief · 10 Jul 2008 at 12:53

Why not just save up like everyone else does? Have you actually thought this through?

Renatukasza · 10 Jul 2008 at 12:57

jamief said:
Why not just save up like everyone else does? Have you actually thought this through?

We don't have time to save up, it's either get a house or be homeless. We can afford the repayments and everything but we are short on the deposit.

Thanks for your helpful post.

Stinky · 10 Jul 2008 at 12:57

Renatukasza said:
And these ways would be?

not legal in a house purchase lol

Hedge · 10 Jul 2008 at 12:58

Just use it for cash advance and pay mortgage in cash haah

Jez · 10 Jul 2008 at 12:58

Yes, as a last resort take cash from the credit card then balance transfer to a 0% transfers card, this will cost you ~2%.

lozza23_uk · 10 Jul 2008 at 12:59

so it isn't legal to take a cash withdrawl on a credit card, and spend it as part of a house deposit?

same for a loan?

can you borrow it from someone?

Renatukasza · 10 Jul 2008 at 13:00

Hedge said:
Just use it for cash advance and pay mortgage in cash haah

The credit card we've got has 0% on purchases/transfers, i'm guessing this wouldn't include cash advance?

Jez · 10 Jul 2008 at 13:02

Credit cards usually (afaik, always) charge interest instantly for cash.

clv101 · 10 Jul 2008 at 13:02

Renatukasza said:
We don't have time to save up, it's either get a house or be homeless. We can afford the repayments and everything but we are short on the deposit.

Thanks for your helpful post.

So you'll have zero equity in the house from day one? Are you not worried about buying a house, having zero equity, as the market falls? Down 2.5% in March, 1.5% in Apr, 2.5% in May and 2.0% in June - totalling 8.2% in just four months (Halifax data).

Seems crazy to me, why not just rent somewhere for six months then see how much the house is?

Stinky · 10 Jul 2008 at 13:03

clv101 said:
So you'll have zero equity in the house from day one? Are you not worried about buying a house, having zero equity, as the market falls? Down 2.5% in March, 1.5% in Apr, 2.5% in May and 2.0% in June - totalling 8.2% in just four months (Halifax data).

Seems crazy to me, why not just rent somewhere for six months then see how much the house is?

what if the house they are waiting is then sold

op - i've emailed you recently, but no reply

Jez · 10 Jul 2008 at 13:06

clv101 said:
So you'll have zero equity in the house from day one? Are you not worried about buying a house, having zero equity, as the market falls? Down 2.5% in March, 1.5% in Apr, 2.5% in May and 2.0% in June - totalling 8.2% in just four months (Halifax data).

Seems crazy to me, why not just rent somewhere for six months then see how much the house is?

Totally agree, this seems like a very quick way to get themselves up a creek :/

Morba · 10 Jul 2008 at 13:09

clv101 said:
So you'll have zero equity in the house from day one? Are you not worried about buying a house, having zero equity, as the market falls? Down 2.5% in March, 1.5% in Apr, 2.5% in May and 2.0% in June - totalling 8.2% in just four months (Halifax data).

Seems crazy to me, why not just rent somewhere for six months then see how much the house is?

if you are not buying to sell again for a profit soon, what difference will it make?
the market will go back up, down again and back up within the next 50 years, so at some point the house is likely to be worth more.

as is always said, if you can afford to buy and arent worried about the impending drop in prices for the short term, then go ahead and buy.

LordSplodge · 10 Jul 2008 at 13:26

Is it just me or does something not feel right in paying a deposit for a house on credit. I mean you'd have to pay the mortage and the loan/cc payments. Illogical.

Morba · 10 Jul 2008 at 13:27

LordSplodge said:
Is it just me or does something not feel right in paying a deposit for a house on credit. I mean you'd have to pay the mortage and the loan/cc payments. Illogical.

no different than a 100% mortgage then?