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Getting 0% credit card to pay Stamp duty

hatchman26
hatchman26 Posts: 3 Newbie
in House buying, renting & selling
Hi guys, I am buying a house with my girlfriend and we have enough for a 15% deposit (just), we have been accepted on a mortgage (Accord). I just need to pay the stamp duty of £1360 and i don't have the extra cash. Is a 0% purchases credit card the best route. i have already exhausted all 'family loans' for help with the deposit. I currently have a credit card with approx £900 on it. Are my chances of acceptance any good? and would it be best to apply for the credit card AFTER completion on the house move as to not hurt my credit rating and the mortgage companies final check.

Thanks in advance for any guidance and wisdom!

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Combo Breaker
    hatchman26 wrote: »
    i have already exhausted all 'family loans' for help with the deposit.

    Do you mean you have been given all the money from family, or that you've had family members loan money to you which you have to return at a later date?

    If the money is a loan (requires repayment) you may struggle to get your mortgage, you have to declare where the money for your deposit has come from and a loan (whether it's formal or informal) is not accepted by most lenders. If you have received money from friends or family you will have to declare it as a gift as will the person that gifted you the money, if you do so and it's a lie you're committing fraud.

    Have you considered adding the stamp duty to your mortgage? There is a main site article here that mentions it.

    A question about whether or not to apply for the credit card before or after the mortgage would be best suited in either the credit ratings section or the mortgage section.

    Personally I would think that if there's a chance you might not get the credit card and you apply after you've accepted the mortgage offer and find out you're rejected (which could take a few weeks) you may find that you're too far into the house buying process to pull out without losing money. Although it may hurt your mortgage credit check by applying for the credit card first, it will allow you to be 100% sure you could pay the stamp duty. If the credit card application is denied then you don't have to proceed with the house buy and won't lose any money.
  • ghosti
    ghosti Posts: 84 Forumite
    First Post First Anniversary Combo Breaker
    you normally pay the stamp duty through your solicitor, if i remmeber correctly, so you have to provide the money to your solicitor at some point. even if this is possible, have you checked whether your solicitor accepts credit card as payment. i have only ever transfered money to solicitors or written them cheques..
  • Yorkie1
    Yorkie1 Posts: 11,550 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Your solicitor will require you to pay the stamp duty to them before completion, along with the other fees and any balance in the deposit.

    Many solicitors do not accept credit cards.
  • Building_Surveyor
    Building_Surveyor Posts: 668 Forumite
    You must have known you needed to pay the stamp duty before committing to the purchase? Surely? ...relying on a credit card you don't yet have...BAD IDEA...

    And just to add you need to pay the stamp duty to your solicitor before you complete.
    An opinion is just that..... An opinion
  • monty-doggy
    monty-doggy Posts: 2,134 Forumite
    First Anniversary First Post Combo Breaker I've been Money Tipped!
    hatchman26 wrote: »
    Hi guys, I am buying a house with my girlfriend and we have enough for a 15% deposit (just), we have been accepted on a mortgage (Accord). I just need to pay the stamp duty of £1360 and i don't have the extra cash

    if you don't have the cash can you switch to 90% or say 92% to release the cash?

    . Is a 0% purchases credit card the best route.

    risky, you have to prove source of deposit, the lender may not like this

    i have already exhausted all 'family loans' for help with the deposit. I currently have a credit card with approx £900 on it. Are my chances of acceptance any good? and would it be best to apply for the credit card AFTER completion on the house move as to not hurt my credit rating and the mortgage companies final check.

    you need the stamp duty funds before completion so this won't work?

    Thanks in advance for any guidance and wisdom!


    I'd say try a smaller LTV or don't buy until you have saved some more!

    Good luck!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Yorkie1 wrote: »

    Many solicitors do not accept credit cards.

    The money is held in a clients account not the solicitors own. So if paid by card then a fee deduction would be made. Which would result in there being insufficient funds to pay the stamp duty with.
  • sheeppappar
    sheeppappar Posts: 252 Forumite
    pretty sure i settled my balance owing to my solicitor by credit card when i purchased last year.. which included the SD (had to pay it via solicitor rather than being able to pay it direct to HMRC).
    If you have to borrow the money to pay it i would think borrowing at 0% is best (as long as you can repay it before the 0% period runs out)
    (i.m not a financial advisor though!!)
    CC1 £7,944.10
    CC2 £2,680.03
    CC3 £1,020.88
  • lawriejones1
    lawriejones1 Posts: 304 Forumite
    Most credit cards offer a 0% fee on balance transfers, not new expenditure.

    A solicitor would normally accept a credit card, although there are limits and they will charge you a fee (often around 3%).

    If you're up against it, you could ask for an increase in your overdraft at the bank (temporarily). You could always ask for na increase in credit limit on your current card and then transfer the entire balance upon completion to an 18mth interest free card.

    Your credit rating can't be that bad - you got a mortgage, after all!
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