Credit card and ability to get mortgage.

[Deleted User]

Good evening.

Looking for some help, as i'm getting conflicting advice.

I am looking to sell up and move home.

I've spoke to a mortgage broker who has found me a good mortgage for a new property that i am interested in.

I'm now at the stage where i am instructing estate agents to sell my current property. This is a online estate agent who charge a fixed fee of £750.

There is an option to pay on finance with the estate agents, however the agent told me that this may go against me, when trying to apply for the mortgage. He then told me that i could use a credit card instead, which won't go against me, and will actually improve my credit rating (as long as i pay it off).

However i have just been on the phone to my mortgage broker, who has told me the complete opposite. They have said using a credit card to pay for estate agents will damage my chances of getting a mortgage.

I'm expecting a call back tomorrow from the estate agent to provide them with my credit card details (luckily i couldn't use it as i had left it at home). Am i safe to pay this on a credit card, or should i move some money about from my ISAs to pay for it instead?

Thanks

sal_III

How are you going to pay for Solicitor, searches, surveys etc. on your new home if you can't afford £750 fee for the EA selling your current place?

Isn't the EA fee payable on completion, rather than advance?

Anyway £750 balance on a CC without any other debt will ahve no impact on your future mortgage other then slight decrease on affordability to account for the CC repayments. If you are so worried use your savings to pay the £750 fee, then top them back up from the sale proceeds if you so wish.

[Deleted User]

Thanks for your reply.

The majority of the other fees will come out of the equity from the sale of my current property. However the Estate Agent fees are upfront.

I ended up doing what you suggested and just using my savings. Which i will top up, once i sell.

amnblog

Refer to your Mortgage Broker, not the Estate Agent, for advice regarding your mortgage.

sal_III

[Deleted User] wrote:

Thanks for your reply.

The majority of the other fees will come out of the equity from the sale of my current property. However the Estate Agent fees are upfront.

I ended up doing what you suggested and just using my savings. Which i will top up, once i sell.

You will get the equity after completion, the fees I listed are due before that.

Also I wouldn't use EA that wants £750 upfront without guarantee they will sell the property, but maybe it's just me...