Can You Pay Mortgage Deposit With A Credit Card?

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.
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But we could afford to pay all that(plus the CC replayments aren't going to last forever are they.) and it gets me,my partner and my 7 month old out of a small cramped room.
 
This is all well and good but only if you have accounted for worst case scenario. That being in negative equity and a doubling (for the sake of argument) of base rates?
 
Renatukasza said:
Thanks for the help guys :(

Is it possible to transfer money from a credit card to a normal account(£2300/Halifax)?
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Some do - when arranging the zero percent on transfers that I'm taking advantage of at the moment, I was asked if I wanted to transfer an amount greater than the balance to my bank then use that to clear other card and use the remainder for whatever, all on 0%.
 
Some credit cards will allow you to balance transfer into a current account, or they may give you credit card cheques that you can write for anything, give them a call and see what they can do.
 
No disrespect but it's actions like this that got the housing market into the sate it is in today.

Whats the interest on a credit card 15% apr+? Then on top of that you will have a cash advance fee.
 
Third Opinion said:
No disrespect but it's actions like this that got the housing market into the sate it is in today.

Whats the interest on a credit card 15% apr+? Then on top of that you will have a cash advance fee.
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No. Its actions that are different to this that is causing part of the issue. People who cannot afford to repay the debt that they owe. the op is stating that they CAN afford it.
 
Morba said:
no different than a 100% mortgage then?
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Not quite the same but I see your point. Not much chance of a 100% mortgage now though!

Renatukasza said:
But we could afford to pay all that(plus the CC repayments aren't going to last forever are they.) and it gets me,my partner and my 7 month old out of a small cramped room.
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Sure, as long as you can afford it and have planned for (most) eventualities. It just seemed a bit illogical that's all.
 
So, there are no properties anywhere near you that you can rent? If you don't have a deposit, rent and save one up. Having negative equity from day one isn't a good idea (nor a good portent for your future financial dealings) in the current financial climate.
 
Absolutely crazy buying now with no deposit. Despite what your man maths are telling you, you cant afford it otherwise you would have the deposit....or if you can afford it you'll be teetering on the edge, desperately hoping that interest rates don't go up. Coupled to that being in negative equity from day 1 - you'd have to be absolutely desperately in love with a certain house to buy right now.

Personally I'd put up with the lack of space, save for a year, then buy and save thousands. Or if you really need the space rent somewhere bigger.

Just noticed, you're only talking about £2300! So are you only borrowing part of a deposit? Surely £2300 isnt going to get you much even as a 5% deposit, and you really need 10% at the moment to get a decent mortgage rate.

Just doesnt add up to be honest.
 
I have done it a couple of times. Write a credit card cheque to your own bank account then write a normal cheque to the solicitor.

Then pay off at your leisure.
 
LordSplodge said:
Corrected for you, after all I could afford far more debt than I have now but could not if say Interest Rates went up a couple of percent.
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Lol - I have a 10year fixed rate mortgage, no credit cards or loans. I can afford much more debt if iso wished, but i donthave those tastes, and i live pretty comfortable.

before ppl start saying boasting git etc. i am aware im am lucky and in the minority.
 
Morba said:
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.
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OMG - was that a serious post?

The point is that the market's crashing and he will have no or little equity from the outset. Within a month he'll be in negative equity and within two years (assuming he has a two year fix) he will be unable to remortgage because the house will be worth 60% or less than the price he's buying it for now.

So, in other words, unless he is happy to go on his lender's SVR then he's completely ******!
 
On a related matter, I feel completely vindicated that the market is now crashing. I told you all in November last year this would happen, and again at the start of this year and too many of you were happy to shout me down.

How do you like those apples? :rolleyes:
 
The Mad Rapper said:
OMG - was that a serious post?

The point is that the market's crashing and he will have no or little equity from the outset. Within a month he'll be in negative equity and within two years (assuming he has a two year fix) he will be unable to remortgage because the house will be worth 60% or less than the price he's buying it for now.

So, in other words, unless he is happy to go on his lender's SVR then he's completely ******!
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Well we're buying it for 74k and it's valued at well over 80k, i'm sure we won't see much of a drop in it tbh.
 
I had a cc offer through from mbna today, that offered 0% on transfers to current account until August 2009 or something (plus the usual 3% fee).

In your situation I would look at renting personally, as with a small deposit you won't be getting the best rates. Wait a while, let house prices fall further while saving up a deposit and then strike.
 
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