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Credit to fund House Deposit & Mortgage

edited 30 November -1 at 1:00AM in Credit Cards
4 replies 836 views
Jonathon365Jonathon365 Forumite
94 posts
edited 30 November -1 at 1:00AM 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,

Replies

  • Edi81Edi81 Forumite
    780 posts
    Sixth Anniversary 500 Posts Combo Breaker
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    NO!
    Lender look at this very poorly.
  • zx81zx81 Forumite
    26.9K posts
    Ninth Anniversary 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    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.
  • 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
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  • Ok thanks for the advice.
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