Deposit on a Credit Card

kriss_boy

Ive seen a dirt cheap 1 bed flat in my town up in Scotland for only 40K. The place needs a complete overhall which explains partly why its so cheap but I think the layout doesnt do it any favours either hence the low price.

The lounge however is massive and could be split into two bedrooms. The existing bedroom is big enough to become the lounge then. It has a loomed ceiling but with clever design it would work. Moving stud partion walls is easy and inexpensive if you know how though.

Anyway, do mortgage lenders look down on those using a credit card as the deposit?

Supposing you got it for 35K then a 10% deposit would only be £3500. Stick it on a 0% card and I could afford to pay the mortgage, deposit and my own house bills.

_Andy_

No lender wil accept that.

kriss_boy

They used to though right?

I could do a super balance transfer with virgin money to get the cash I guess.

_Andy_

As I've already stated, no lender will accept funds from a credit card or loan as a deposit.

kriss_boy

sorry.....

joolley

I'm not sure that _Andy_ is correct. I have bought 3 houses here in Scotland over the years, the last being 1 yr ago when things were in the middle of going pear shaped (to live in not investments or anything). No lender has ever asked me where the deposit was coming from. I told them how much I had and merely handed the cheque to my solicitor on the day. It could have come from a virgin money cc, my Gran, my Pa or from hard earned savings for all they knew. As a FTB I think I said savings and thereafter equity but I don't recall anyone caring tbh.

However, as to whether this is advisable - I suspect not. If you cannot find £3500 to put as a deposit, then where would you find money to do it up?

Joolley

herbiesjp

Andy is correct

Part of money laundering regulations, is not only has to ID the person, but also the source of the funds

Jez-_2

_Andy_ wrote: »

No lender wil accept that.

I think we have already touched on the fact that while financially irresponsible, this is NOT the case.

kriss_boy - you can do what you say by drawing cash on one card and then BT'ing to another. But to be honest if you cannot afford £3500 as a deposit are you really going to be in a position to be undertaking what sounds like major works on a property which are likely to cost several times over what the asking price of that flat is?

getmore4less

If the money is sitting in your account then it becomes savings.

You will also have some debt.

Loads of people buy houses with mortgages when they have other debts and savings.