Money transfers to boost deposit?

Astraeus

So I was contacted by two of my CC providers last month who have both, presumably to entice me back to using their card, offered 12 months interest-free on money transfers. Given the combined credit limits, that's a very handsome sum indeed of interest-free money.

It led me to thinking of two possible stoozes:-

1. Get a mortgage offer assuring the lender of a deposit which included the credit available by virtue of money transfers (effectively borrowing the deposit on an interest-free basis); or

2. Get a mortgage offer excluding the credit available and then raise it immediately after getting the offer and make huge overpayments in the first few months.

I can't think option one is particularly attractive to a lender but I also can't see how they'd be able to monitor it, i.e. once you have the mortgage offer, how you pay the deposit to the lender is irrelevant. It therefore seems a very handy way for one to add over £5,000 to a deposit.

What am I missing?

betmunch

Lenders are a very sneaky bunch. They will ask you the source of deposit.

Thats how they find out.

You need to check a lender is happt with this meathod of raising a depost before doing it

Let_Us_See

Astraeus wrote: »

What am I missing?

Commonsense and the perception lenders and solicitors are stupid.

amnblog

Option one is likely to tip ove your mortgage offer.

Option two raises the question, what happens in twelve months when you have paid several thousand off of your mortgage saving perhaps 3% or 4% interest and are then being charged 19% by the card provider?

Thrugelmir

Astraeus wrote: »

I can't think option one is particularly attractive to a lender but I also can't see how they'd be able to monitor it, i.e. once you have the mortgage offer, how you pay the deposit to the lender is irrelevant. It therefore seems a very handy way for one to add over £5,000 to a deposit.

What am I missing?

Do you think that this hasn't been tried before?

Do you want to take the risk that you'll be found out?

Malmo

Lenders can and will credit check you even after agreeing a mortgage offer following full application. That will impact your option 2 and they will withdraw the offer.

MakinEndsMeet

Malmo wrote: »

Lenders can and will credit check you even after agreeing a mortgage offer following full application. That will impact your option 2 and they will withdraw the offer.

We've been told that our mortgage offer is in the post. Since there is a chance that we could be credit checked again before completion, do you think we should try to keep our credit card balance the same as it was at application? Does it matter if it goes up a bit? It's an expensive time and we were hoping to have the cc as a back up, but not of it will jeopardise our house purchase.

Thanks and sorry for the hijack