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Credit to fund House Deposit & Mortgage
Jonathon365
Posts: 94 Forumite
in Credit cards
Hello Money Saving Expert Forums,
I am a 24 year old looking to get my feet on the housing ladder. I've been saving from January this year and have put away about £7k (mostly in a Lifetime ISA and some invested in a Vanguard Index fund).
My Company is moving my office to Manchester in the next 6 weeks and rather than rent I'd quite like to get on the property ladder.
There are nice apartments that can be had from anywhere between £150k-£200k.
I'm not 100% clear on how much deposit I'd need (I'd assume 10%, but I've read you can get away with 5%?), so i'd assume i'm not THAT far off. Additionally from running a reselling business a few years ago where I'd buy £1000s worth of stock using a credit card and sell on for a small profit, I've built up a very good credit score and have about £25k of credit available to me and currently using none of it.
My question is this -
Is it possible for me to money transfer a portion of that credit (maybe £5k?) into cash in my bank that I can use for a deposit? I know the money transfer half is possible and at low rates, but can I use this cash to fund a deposit? Will the bank look into my credit report and see that I've borrowed some of the deposit and refuse the mortgage?
I've done some research myself but people seem to have different opinions, so looking for some clarity.
Many thanks,
I am a 24 year old looking to get my feet on the housing ladder. I've been saving from January this year and have put away about £7k (mostly in a Lifetime ISA and some invested in a Vanguard Index fund).
My Company is moving my office to Manchester in the next 6 weeks and rather than rent I'd quite like to get on the property ladder.
There are nice apartments that can be had from anywhere between £150k-£200k.
I'm not 100% clear on how much deposit I'd need (I'd assume 10%, but I've read you can get away with 5%?), so i'd assume i'm not THAT far off. Additionally from running a reselling business a few years ago where I'd buy £1000s worth of stock using a credit card and sell on for a small profit, I've built up a very good credit score and have about £25k of credit available to me and currently using none of it.
My question is this -
Is it possible for me to money transfer a portion of that credit (maybe £5k?) into cash in my bank that I can use for a deposit? I know the money transfer half is possible and at low rates, but can I use this cash to fund a deposit? Will the bank look into my credit report and see that I've borrowed some of the deposit and refuse the mortgage?
I've done some research myself but people seem to have different opinions, so looking for some clarity.
Many thanks,
0
Comments
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NO!
Lender look at this very poorly.0 -
Jonathon365 wrote: »I've built up a very good credit score and have about £25k of credit available to me and currently using none of it.
In addition to very few lenders accepting a borrowed deposit, make sure you review your credit files and not just the pretend credit score.
Lenders will be looking for a solid history of using credit - eg a credit card, clearing in full each month.0 -
The credit card "loan" will count as your debt and reduce what they will lend you, just pay bills on time in full every month and keep saving. Does your firm not offer a relocation allowance? Save your credit for buying stuff for your house or rent deposit
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Ok thanks for the advice.0
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