Newbie: Using a Credit Card for deposit on a flat??

_Andy_

NickX wrote: »

Just get an MBNA run card such as Virgin, Sony, Alliance & Leicester etc. They have SBT (Super Balance Transfer) capability and you can transfer funds from the card directly to your Bank Account. You can then pay your flat deposit from there. No problemo :cool:

Well there is a problem - the mortgage lender isn't going to accept it as a form of deposit. (Again, I'm assuming he's buying rather than renting, due to the sums mentioned)
Not to mention the fact that the OP clearly isn't in a financial position to be buying a property.

KKevin_2

NickX wrote: »

Just get an MBNA run card such as Virgin, Sony, Alliance & Leicester etc. They have SBT (Super Balance Transfer) capability and you can transfer funds from the card directly to your Bank Account. You can then pay your flat deposit from there. No problemo :cool:

So effectively if i say got a Virgin card, used the Super Balance transfer transfered £5k into my bank account pay the fee (3%), went to the bank with my deposit for a flat paid it

Then over the period of the interest free in Virgins case 16months clear the £5k

I assume i would be able to this no problem?

Thanks everyone for there input

NickX

_Andy_ wrote: »

Well there is a problem - the mortgage lender isn't going to accept it as a form of deposit. (Again, I'm assuming he's buying rather than renting, due to the sums mentioned)
Not to mention the fact that the OP clearly isn't in a financial position to be buying a property.

If the funds have been obtained from a Super Balance Transfer then the mortgage lender does not know that they came from a Credit Card. Its just cold hard cash to them.

I think its down the the OP to decide whether they are in a suitable financial position to buy property, not posters on this forum who know very little about them.

TFD_2

_Andy_ wrote: »

Well there is a problem - the mortgage lender isn't going to accept it as a form of deposit. (Again, I'm assuming he's buying rather than renting, due to the sums mentioned)
Not to mention the fact that the OP clearly isn't in a financial position to be buying a property.

He's suggesting using the SBT on an MBNA card so that will turn it into cash in the bank - absolutely fine for a deposit.

NickX

KKevin wrote: »

So effectively if i say got a Virgin card, used the Super Balance transfer transfered £5k into my bank account pay the fee (3%), went to the bank with my deposit for a flat paid it

Then over the period of the interest free in Virgins case 16months clear the £5k

I assume i would be able to this no problem?

That is exactly what I am suggesting. Should work as far as I can see.

KKevin_2

Sorry meant to add for a down payment for a mortgage to buy a flat

NickX

KKevin wrote: »

Sorry meant to add for a down payment for a mortgage to buy a flat

It will work, but I would ensure that you have the mortgage offer in writing before applying for the Virgin card because you want the mortgage company search to hit your credit file before the one from Virgin as there could be an impact on the mortgage companies decision if they see the Virgin debt on your Credit File.

rodent

Just to confirm it will most definately work !
Have bought around 30 houses using cc cash as deposits.

The Rodent

nobblyned

Times have changed, very risky these days. There are stories on here about mortgages being withdrawn between exchange and completion as a second credit search reveals the applicants' situation has adversely changed in the eyes of the bank. This can be very expensive.

On application for the mortgage you will assure them of your financial position, including debt level. Should this change between decision in principle and purchase, and they find out, they have every right to withdraw the facility.

Be warned.

KKevin_2

rodent wrote: »

Just to confirm it will most definately work !
Have bought around 30 houses using cc cash as deposits.

The Rodent

How did you manage to accumulate a portfolio using this method if you dont mind me asking, im sure now it will be more difficult though.

As for my circumstances, ive no debit and currenlty have a good job that is paid well with a good credit rating. i have got 2 flats but aiming to get a third, as i need 25% for a buy to let, im looking at means of obtaining a bit of cash in advance to purchase a property, once ive got it up and runing would be able to clear the money borrowed over the course of 6 months or so.