Paying costs with credit card (s)

Rubyjasper1987

Hello,

My boyfriend and I are first time buyers, currently with a 5% deposit....although I've figured out technically we have closer to an 8% deposit IF we were to pay all of the fees and costs (surveys, fees, stamp duty) etc on 0% credit cards - meaning we're a snip away from a 10% deposit overall, which would give us a better mortgage deal. We both are on approx 55k salaries and are looking at house prices between 350 and 375k so can afford the repayments but I see that you get better mortgage deals with higher deposits...

As we're first time buyers I wanted to ask the stupid questions and get some advice!:

1. Can you pay for house costs with credit cards?
2. Is this even a semi-sensible suggestion?!

Would appreciate any advice from knowledgeable/experienced individuals!

sheff6107

Don't think you can put stamp duty on a credit card. The solicitor sends it across from the proceeds of sale

HouseBuyer77

I believe some credit cards offer a cash advance facility (they transfer money to your account and it appears as an item on your bill) interest may be different however.

You might find a solicitor/surveyor etc who take credit cards but it'll limit your choice.

Perhaps a bank would accept a credit card payment for mortgage fees. You'd have to ask them.

Though really if you're in such a precarious financial position that you need to pay fees on a credit card do you really want the financial responsibility of a house? You'll want a pot of money for emergencies or your one new boiler or roof replacement away from not being able to pay your mortgage.

On a joint income of £110k surely you can tighten your belt for a few months and save up?

smile88egc

Last year I asked a removals company if I could pay by credit card, and I couldn't. Sure this would vary from company to company.

But I agree with the above poster, just be patient and get to the 10% through saving a little bit harder/longer, it will be so worth it for a better mortgage rate! Best of luck.

Astraeus

sheff6107 wrote: »

Don't think you can put stamp duty on a credit card. The solicitor sends it across from the proceeds of sale

You can use a credit card (https://www.gov.uk/guidance/pay-stamp-duty-land-tax).

csgohan4

Astraeus wrote: »

You can use a credit card (https://www.gov.uk/guidance/pay-stamp-duty-land-tax).

Your solicitor may not as the stamp duty usually goes through them. Plus do you have a high enough limit to pay it.


Don't forget lenders can and will do credit checks prior to completion and can withdraw their offer at anytime prior to completion.


That is why it is advised not to use large amounts of credit prior to completion.


If your stretching yourself, don't do it, you might need money for unexpected costs like boilers and repairs.

booksurr

Astraeus wrote: »

You can use a credit card (https://www.gov.uk/guidance/pay-stamp-duty-land-tax).

you have missed the point that where the purchaser needs to pay using a mortgage it is impossible to use a credit card to pay the SDLT direct to HMRC

The solicitor is required by the lender to have the cash in their hands before the sale completes. If you need a mortgage you cannot pay HMRC directly so that link is irrelevant. Solicitors don't normally accept credit card payments for SDLT amounts upfront not least being because of the credit card charges they would incur accepting the money.

fairy_lights

Being 'a snip' away from having a 10% deposit is not the same as actually having a 10% deposit.
As you're both on good salaries why not keep saving so you can have a decent deposit and money for your fees?

Cakeguts

You need a lot more practice at saving a lot of money. Owning a property comes with unseen costs for repairs unless you can get into the habit of not wasting money on buying things that you want rather than need and learning not to go out for meals you would be better off renting.

Kitten868

I wouldn't recommend it. At best you can they will charge you. Our solicitors was 1.5% for a credit card. And also it might affect your ability to borrow. I would go with the 5% deposit and the nasty rate just only fix for 2 years tops. You can overpay so come 2 years youre on a lower rate. And save like a demon while you're looking/buying. You usually get about 3 months from offer til you move in. X