Novice question re deposits

Garnett_F

Can anyone tell me, if I make use of the M&S credit card to arrange a "loan" of whatever the limit of the card is, can I use this as part of a deposit on a house, or do mortgagers look at your credit cards debts when assessing whether to give you a mortgage or not?

Doozergirl

You have to declare other debts on your mortgage application form and depending on the outstanding amounts, they can affect the amount you can borrow.

Mrs_pbradley936

Well you could do that in theory but it might be better to take out a bigger mortgage.

SmartGirl_2

Doozergirl wrote:

You have to declare other debts on your mortgage application form and depending on the outstanding amounts, they can affect the amount you can borrow.

But it does not stop you from getting a loan after you start paying the mortgage, does it?

I was thinking along similar lines - I have 5% deposit, but fixed rates are so bad compared to having 10% deposit, that I might be better off getting another 5% of deposit as a loan from the bank.

regularsaver1

they will look at the affordability of oaying both the mortgage and the loan - and the mortgage lender will require to know where the deposit is coming from

Inzvestor

Wherever possible do not use Credit Cards as deposit unless you have the funds coming from elsewhere to pay this back before the interest is due (eg an investment maturing that would cost to break early)

Cash withdrawls from cards usually attract interest from the date of the withdrawl. Check the fine print of 0% interest deals too

PoorDave

Although many stoozers use 0% credit card money to put into their offset mortgages, saving paying lots of interest on the mortgage.

regularsaver1

Yes Poordave but this is a deposit - the lender will look at affodability and ask where deposit came from