can i pay a house / mortgage deposit with a credit card?

littlejaffa

Am thinking about buying a 2nd home to rent out, and have huge credit card limits, with nothing on them so could easily use the allowance to pay for a deposit.
I was thinking of doing that - on a card that has zero % interest then possibly switching to another interest free at the end of the period depending how it goes, income from letting could pay of the minimun payments each month and give a profit.
I've no worries about the logistic but not sure if it's physically possible to pay a deposit with a credit card (i wouldn't mind if there was a fee depending how much) has anyone tried this - can give advice etc?

sorry if this is the wrong place to post but seemed a mortgage - credit card combo!

Astaroth

In theory nothing to stop you doing it but remember that most BTL mortgages require a 25% deposit on the property.

A friend did do this but used a credit card cheque so had to pay a 2% fee on the deposit.

jonesMUFCforever

I know of no mortgage company that will let you pay a mortgage from a credit card.
Applicants also normally have to declare all other debts on the application form - some will insisit that they are paid off before releasing money.
IMO if you have to go down this road think again - you do not seem to have sufficent liquidity to make it work.
As well as the actual mortgage have you thought about solicitors and other legal fees, insurance council tax, repairs and re decoration + furnishing the place.
Don't let the thought of getting nice monthly rent payment turn your head before thoroughly investigating whether you can really afford it.

littlejaffa

ejones999 wrote:

I know of no mortgage company that will let you pay a mortgage from a credit card.
Applicants also normally have to declare all other debts on the application form - some will insisit that they are paid off before releasing money.
IMO if you have to go down this road think again - you do not seem to have sufficent liquidity to make it work.
As well as the actual mortgage have you thought about solicitors and other legal fees, insurance council tax, repairs and re decoration + furnishing the place.
Don't let the thought of getting nice monthly rent payment turn your head before thoroughly investigating whether you can really afford it.

Your making assumptions about my 'liquidity' that i have not given you enough information to make accuratly.
Also your point about declaring other debts doesn't apply to by to let - i apprecaite all advice but before telling me i'm wrong or it's a bad idea please make sure what you say is accurate

grumbler

Paying for deposit on credit card.

jonesMUFCforever

Littlejaffa

I stand by every word I said - Sorry if it was not what you wanted to hear.
If you have funds available to put down a deposit why even ask about getting cash off credit cards?

Bossyboots

It looks like we all read this differently. I assumed the OP intended to ask his solicitor to take the deposit by credit card. That would then depend on him using a solicitor with credit card facilities that would be willing to take that much by that method. In theory, I cannot see why it would not be possible. It is just a question of finding a law firm that has those facilities.

I can't see any mention that the OP intends to pay the mortgage from the card, just his purchase deposit.

Fitzy29

Hi, you're best calling your solicitor and just asking most will and do take credit cards to pay anything you need to ( they sometimes make a charge to you though to cover the cost of them accepting the card ) The only time i am aware when a Solicitors wont take a credit card for payments is when you are doing a remortgage and the new amount of lending won't pay off your old lending with the previous mortgage, ie you can't pay credit with credit.

Borrowing for investment in my view is good, as long as you know you can get 0% rates whilst your investment in the long term pays off and you receive a greater return!:T

jonesMUFCforever

Obviously posters here know different solicitors to the ones I know. I have never been offered the facility to pay anything to a solicitor by credit card.
These days they are even reluctant to take cash because of money laundering regulations.

Fitzy29

They don't ususally advertise the fact they can take cards, cos it's not the best option as far as they are concerned, you gotta ask them direct if they take 'em or not.

Fitzy29

They don't ususally advertise the fact they can take cards, cos it's not the best option as far as they are concerned, you gotta ask them direct if they take 'em or not.