Paying Stamp Duty by Credit Card

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DpchMd
DpchMd Posts: 540 Forumite
in Mortgages & endowments
I'd like to avail of the benefits of my British Airways AMEX by paying my £17.5k stamp duty on my credit card. The 1.4% charge for paying by credit card is worth the benefit to me.

I understand the Mortgage Lender guidelines state that the solicitor has to be in possession of cleared funds before completion takes place. I am not sure how strictly enforced this guideline is.

If I HAVE to send my solicitor the funds, that's fine too.

Thanks all
"Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin

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  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    If you are buying with a mortgage, you have to pay the funds to your solicitor in advance of completion.

    No-one, neither the solicitor nor HMRC is going to pick up the merchant charge for a SDLT transaction that size, so paying by credit card is not going to be an option.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • DpchMd
    DpchMd Posts: 540 Forumite
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    kingstreet wrote: »
    If you are buying with a mortgage, you have to pay the funds to your solicitor in advance of completion.

    No-one, neither the solicitor nor HMRC is going to pick up the merchant charge for a SDLT transaction that size, so paying by credit card is not going to be an option.

    Hi Kingstreet,

    I pick up the merchant fee by paying an additional 1.4% surcharge.

    Thanks for the info!
    "Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    I thought merchant fees were between 2% and 3%?

    All I can suggest is speak to solicitor concerned.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • DpchMd
    DpchMd Posts: 540 Forumite
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    kingstreet wrote: »
    I thought merchant fees were between 2% and 3%?

    All I can suggest is speak to solicitor concerned.

    Hi Kingstreet,

    No, you have massively overestimated typical merchant fees.

    Turns out HMRC don't accept AMEX anyway (probably because they do charge a little more!), so I'll keep it simple and pay the solicitor. Shame!

    Thanks for your help.
    "Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
  • amnblog
    amnblog Posts: 12,445 Forumite
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    DpchMd wrote: »
    Hi Kingstreet,

    No, you have massively overestimated typical merchant fees.

    Turns out HMRC don't accept AMEX anyway (probably because they do charge a little more!), so I'll keep it simple and pay the solicitor. Shame!

    Thanks for your help.


    You will find that Kingstreet is once again correct - 2.5% is the going rate.


    You also need to bear in mind that if you require a mortgage, no lender is going to want you putting SDLT on a credit card.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Jason_Bourne_2
    Jason_Bourne_2 Posts: 182 Forumite
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    amnblog wrote: »
    You will find that Kingstreet is once again correct - 2.5% is the going rate.


    .


    2.5% is not the going rate as the surcharge must not be higher than the cost the business has to pay for processing that method of payment. 1.5% is far nearer the mark


    Doesn't matter, as they wouldn't allow it.
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  • chanz4
    chanz4 Posts: 10,895 Forumite
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    1.5 for credit card process.....
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • amnblog
    amnblog Posts: 12,445 Forumite
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    Jason_Bourne wrote: »
    2.5% is not the going rate as the surcharge must not be higher than the cost the business has to pay for processing that method of payment. 1.5% is far nearer the mark.

    Not according to the Merchants reconciliations and payments guide on the Amex website.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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