Paying for Stamp Duty and other costs with Credit Card

avuncular

Hi all,

I have 35k saved up for house deposit. I would like to use the full amount as deposit to get the best LTV and/or larger house.

Can I do this or should I earmark some of it to pay for stamp duty and solicitor fees?

It would be great if I could whack these fees onto my credit card -- as long as the benefit of doing so would outweigh any CC interest. Can this be done? Is it advisable?

I'd assume that making a large card purchase after mortgage is sorted wouldn't affect the mortgage lender's decision/wouldn't show on any credit files yet.

Thanks.

Slayerx

It's unlikely from my experience that a solicitor will allow you to pay fee's on a credit card.

Both firms I have worked for wouldn't allow it.

As the bill you get from them will include stamp duty.

andygb

Slayerx wrote: »

It's unlikely from my experience that a solicitor will allow you to pay fee's on a credit card.

Both firms I have worked for wouldn't allow it.

As the bill you get from them will include stamp duty.

Stamp duty is normally paid over on the same day that the completion takes place, and as it is quite a large sum of money, will be paid out of Client a/c, along with other substantial amounts such as agent's fees.
The bill to the client for the conveyancing may include smaller disbursements, such as TT fees, local searches, LR fees, plus of course the solicitor's fees and VAT. It is very unlikely (and I have never come across it in twenty years) that stamp duty would be included in this bill, because it would be paid from Client a/c.
What is more likely to happen, would be a "cash statement" attached to the bill, which would detail ALL costs incurred (including the stamp duty) during the purchase/sale.
I have also worked in a few law firms, where the client may pay their bill using VISA (as well as the normal methods of cheque or bank transfer), and it doesn't matter whether or not it is a debit or credit card.
I think it is simply down to the solicitor you choose, it is definitely not something which they are not allowed to do.

chanz4

Myn you could but not SD, fees with 3%

kingstreet

If a mortgage is needed, stamp duty and fees must be paid in advance of completion, under CML Handbook rule 10.4.

Solicitors will not normally accept fee payments by credit card and stamp duty will almost certainly not be accepted that way, as the solicitor would be charged the merchant fee on the transaction.

Ask solicitor, for optimal accuracy.

andygb

kingstreet wrote: »

If a mortgage is needed, stamp duty and fees must be paid in advance of completion, under CML Handbook rule 10.4.

Solicitors will not normally accept fee payments by credit card and stamp duty will almost certainly not be accepted that way, as the solicitor would be charged the merchant fee on the transaction.

Ask solicitor, for optimal accuracy.

Rule 10.4 actually says this:

You are only authorised to release the loan when you hold sufficient funds to complete the purchase of the property and pay all stamp duty land tax and registration fees to perfect the security as a first legal mortgage or, if you do not have them, you accept responsibility to pay them yourself. This does not apply if acting in accordance with



Therefore, the client would ensure that his/her credit card payment (if accepted by the solicitor), covered all fees and disbursements, including stamp duty. The credit card payment could be paid into the solicitor's Office account (where fees are payable), and the stamp duty paid from there, or alternatively the stamp duty could be paid from Client account (which is normal practice), and the money transferred from Office account immediately to ensure that Client account is not overdrawn.
It is becoming increasingly common for payments to solicitors to be made by debit or credit card (particularly given the current economic situation), and the first one which I saw happened way back in the 1990's (one of the old manual slide machines).

kingstreet

I wasn't necessarily linking the two things together, merely "scene setting" that SDLT etc had to be with the solicitor in advance of completion.

In my experience today, solicitors don't like fee payments by credit card, but may accept. However, I have never seen a solicitor accept a SDLT payment by credit card, in my 30 years doing this job.

If the OP can find one, great. My experience says he won't but I'm old enough and daft enough to know there's always the exception to make you look foolish, which is why I suggested asking the solicitor in question.

Thrugelmir

Money deposited with a solicitor is clients funds not the solicitors. Solicitors settles the mortgage transaction, pays disbursements and takes their own fees from a clients account.

ethank

Most of the solicitors I spoke with charged a fee ranging from £30 to 3% for using a credit card!

claret_mike

can't you get a super balance transfer card that lets you do a transfer to bank account from credit card?

andygb

Thrugelmir wrote: »

Money deposited with a solicitor is clients funds not the solicitors. Solicitors settles the mortgage transaction, pays disbursements and takes their own fees from a clients account.

Not always, and certainly not when the client has submitted the funds solely to pay off a solicitor's bill, when those funds may be paid directly into the solicitor's Office account.
In the case of a sale/purchase, file/matter, you could be correct, because the client will have received a cash statement, showing how much he has paid, how much is due to be paid, and possibly the amount due to complete if required.
Conveyancing matters are by far the easiest accounts to deal with, because when compared with litigation, matrimonial, corporate, wills and probate, they almost always come to an end with the completion, and all transactions should be finalised on the day.