credit card for house purchase?

obay · 6 September 2017 at 12:31PM

I found a good house to buy (not so locally) but close enough to warrant a second house purchase, the house is purchasable at £30,000. I have £7500 already so I only really need £22,500 to fund this purchase. (I have £1k for legal also).

Can anyone tell me what card I should have to be able to fund a house purchase? That the balance doesn't need to be paid off in a month and has a 0% interest period? with the monthly payments low?

I'm looking to pay back £250-£300/month including interest, hoping someone has anything that can help me with.

stevenhp1987 · 6 September 2017 at 12:40PM

I'm unsure (only if you are a millionaire!) you will be able to get a credit card with a ~£25k limit (around 90% of limit for cash transfer).

Are you not better off getting a mortgage? You could get a personal loan, but a mortgage would give a better interest rate.

eskbanker · 6 September 2017 at 1:06PM

OP did start by looking for a BTL mortgage but someone on their other thread suggested a credit card: http://forums.moneysavingexpert.com/showthread.php?t=5705492

However, there is also mention in that thread of £15K of unsecured debt and another thread talks of a default on the credit files, so securing a massive limit on a credit card would seem somewhat ambitious!

Ebe_Scrooge · 6 September 2017 at 1:08PM

Is this a serious post ???

Firstly, a house for £30K ? Is it a mobile home or something ? I can't imagine what sort of house would be only £30k.

Secondly, even if you could get a card with a £22.5k limit ( highly unlikely ! ), if you're paying back £250 a month that would take you 7 1/2 years, even without interest. No card would offer a 0% promotional rate for anything approaching that length of time.

How about an ordinary mortgage ? Though for a second home, I know you can't always get an ordinary residential mortgage. But that's going to be the most sensible option.

obay · 6 September 2017 at 6:08PM

Ebe_Scrooge wrote: »

Is this a serious post ???

Firstly, a house for £30K ? Is it a mobile home or something ? I can't imagine what sort of house would be only £30k.

Secondly, even if you could get a card with a £22.5k limit ( highly unlikely ! ), if you're paying back £250 a month that would take you 7 1/2 years, even without interest. No card would offer a 0% promotional rate for anything approaching that length of time.

How about an ordinary mortgage ? Though for a second home, I know you can't always get an ordinary residential mortgage. But that's going to be the most sensible option.

Yes, I found a house for £30k - I already have 7.5k to get the LTV to 75%.

It's a attached house in a location close to me.

obay · 6 September 2017 at 6:11PM

eskbanker wrote: »

OP did start by looking for a BTL mortgage but someone on their other thread suggested a credit card: http://forums.moneysavingexpert.com/showthread.php?t=5705492

However, there is also mention in that thread of £15K of unsecured debt and another thread talks of a default on the credit files, so securing a massive limit on a credit card would seem somewhat ambitious!

Are you judging me? I'm sorry but over the last 5 and a half years, I have grown up, got my own mortgage and started overpaying this, unfortunately I have little equity in my house as it started so recently.

Yes, I have 15k of unsecured debt, only recently I have had this, It's manageable, as I pay more then the minimum back each month + £50 if you must know.

I have most stuff on interest only currently, I will not need to get a card to transfer as the way I'm going, I'll have paid everything off within the next 18 months.

Third and lastly, I earn way above my borrowing, but I just don't have the initial capital to fund this from my own pocket.

Sncjw · 6 September 2017 at 6:22PM

Your not going to get 22k limit when your paying back a 15k debt. Also at a 0% rate as well.

How much do you earn.

Sncjw · 6 September 2017 at 6:25PM

I doubt you will get a low Apr on a loan that high as well

meer53 · 6 September 2017 at 6:48PM

Why do you have £7500 to put towards a house when you have £15k of debt ? Look for a second house when you have no debt and spare cash.

obay · 6 September 2017 at 6:55PM

meer53 wrote: »

Why do you have £7500 to put towards a house when you have £15k of debt ? Look for a second house when you have no debt and spare cash.

It's very manageable, It's made up of three agreements excluding my mortgage payment. I have a very good high paid job, it's not a problem.

Again, I have the savings from work, I over pay everything I have.. This isn't about what I have had, it's about managing money sensibly. Of which I now do thanks to that default from 5/half years ago on me, of which I have learnt to properly budget my self.

I have a good round spare amount per month that I put into my savings and or mortgage depending on what I want to do..

eskbanker · 6 September 2017 at 6:58PM

obay wrote: »

Are you judging me? I'm sorry but over the last 5 and a half years, I have grown up, got my own mortgage and started overpaying this, unfortunately I have little equity in my house as it started so recently.

Yes, I have 15k of unsecured debt, only recently I have had this, It's manageable, as I pay more then the minimum back each month + £50 if you must know.

I have most stuff on interest only currently, I will not need to get a card to transfer as the way I'm going, I'll have paid everything off within the next 18 months.

Third and lastly, I earn way above my borrowing, but I just don't have the initial capital to fund this from my own pocket.

No, I'm not judging you - I'm just making pertinent observations based on relevant information that you've posted in other recent threads, and objectively pointing out that the default on your file will hinder your ability to get good cheap credit and that your current level of unsecured debt makes it extremely unlikely that you'd be offered anywhere near £22.5K of new unsecured credit on a credit card.

credit card for house purchase?

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