Using a credit card so house deposit is protected

max1234_2

Can somebody please let me know if I can do this.

I am looking at using a credit card for a new house deposit so that it is protected incase the worst happens and the building company goes bust.

Can somebody let me know if this is allowed. Will credit card companies allow this? I would be paying the balance off immediately.

Thanks

max1234_2

please? does any1 know?

Typhoon2000

I am pretty certain the answer is no. There no Solicitor I have come across that will accept credit card payments, let alone for such a large sum. Only cheque or bank transfer. And a credit card cheque does not afford you the same protection as its considered like a cash advance.

lawrie28

You need to ask your solicitor to arrange for an independant third party to hold the funds, possibly through a client account. that way you can have an arrangement that the deposit can only be accessed by the builder on completion, and by yourself only if they go bust. Of course if the builder needs the cash to complete the build they may not acept this, but if they need your cash to do it, then you don;t want to give them the money, cos they are at a higher risk of going bust!

thriftymomma

I think the way to get around this would be to use one of the credit card cheques, which you would pay to your own bank account. Or a card that has a Super Balance Transfer. Good luck.

cocktail

max1234 wrote: »

Can somebody please let me know if I can do this.

I am looking at using a credit card for a new house deposit so that it is protected incase the worst happens and the building company goes bust.

Can somebody let me know if this is allowed. Will credit card companies allow this? I would be paying the balance off immediately.

Thanks

unlikely anyone would accept it...there are credit card fees involved for the recipient.
also for you , it would count as a cash advance and interest would be charged at a higher rate from the day of payment. no protection.

jonesMUFCforever

I agree with the above answers it is very unlikely that anyone will accept credit card transactions for this type of thing.
You need to consult your solicitor - who should be able to advise of the best way ahead.

If this is a real problem for you consider a ready built property and not buy off plan (which I presume you want to do).

PBA

Surely the deposit will be held by your solicitor and not released until the day of completion? In this case you have nothing to worry about, as the funds will be in a client account so therefore protected if the solicitor/bank collapses.

never-in-doubt

max1234 wrote: »

Can somebody please let me know if I can do this.

I am looking at using a credit card for a new house deposit so that it is protected incase the worst happens and the building company goes bust.

Can somebody let me know if this is allowed. Will credit card companies allow this? I would be paying the balance off immediately.

Thanks

when I bought my new build, I had to pay the builder a grand to reserve the house (gave a cheque) then at completion I paid the deposit via solicitor - maybe the OP is referring to a deposit similar to mine as he did mention 'builders'

anotherpaul_2

thriftymomma wrote: »

I think the way to get around this would be to use one of the credit card cheques, which you would pay to your own bank account. Or a card that has a Super Balance Transfer. Good luck.

Unfortuntaly, neither of these would be protected under section 75 if the builder goes bust. They're an option for paying the deposit, but not for protecting it, which was the OPs aim.