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Pay with CC or from Savings?
Raffers
Posts: 131 Forumite
Some background first...
So, I'm in Scotland and currently in the process of separation from my wife. That side of things is all in hand and I am shortly due to pay her a lump sum (£6K) by way of completion on the separation. The current home we both live in is a non-matrimonial asset (100% in my name and purchased prior to marriage). The payment is on the agreement that she walks away with no claim on the actual house.
Once she has left this home, I plan to sell up and buy a new property. I already have full mortgage acceptance for new borrowing from Lloyds. This acceptance is valid for another month or so.
As stated, this is all in hand and just to provide a background to my question...
The lump-sum - so, I have two real options on how to pay it to her.
1) I took the pre-emptive step of applying and getting a CC which allows 0% purchases (and BTs) for 27 months. My credit limit exceeds this lump-sum and I can pay the money directly to my Solicitor for onward transfer to my wife. I would then quite happily pay this back over the 0% window as my other outgoings vs salary are modest.
2) The other option is to pay the entire balance direct from my savings (currently earning 1.5% p/month). Whilst this seems more clear- cut solution, this would mean that I have reduced savings and a largely-unused CC.
However, when it comes to finally getting round to buying a new property, I'm wondering if option 1) would harm my mortgage application process (I'm unsure if it's simply the credit limit you have or how much of it you've used once you have it).
Thanks.
So, I'm in Scotland and currently in the process of separation from my wife. That side of things is all in hand and I am shortly due to pay her a lump sum (£6K) by way of completion on the separation. The current home we both live in is a non-matrimonial asset (100% in my name and purchased prior to marriage). The payment is on the agreement that she walks away with no claim on the actual house.
Once she has left this home, I plan to sell up and buy a new property. I already have full mortgage acceptance for new borrowing from Lloyds. This acceptance is valid for another month or so.
As stated, this is all in hand and just to provide a background to my question...
The lump-sum - so, I have two real options on how to pay it to her.
1) I took the pre-emptive step of applying and getting a CC which allows 0% purchases (and BTs) for 27 months. My credit limit exceeds this lump-sum and I can pay the money directly to my Solicitor for onward transfer to my wife. I would then quite happily pay this back over the 0% window as my other outgoings vs salary are modest.
2) The other option is to pay the entire balance direct from my savings (currently earning 1.5% p/month). Whilst this seems more clear- cut solution, this would mean that I have reduced savings and a largely-unused CC.
However, when it comes to finally getting round to buying a new property, I'm wondering if option 1) would harm my mortgage application process (I'm unsure if it's simply the credit limit you have or how much of it you've used once you have it).
Thanks.
0
Comments
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What's the BT fee?0
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I'm not sure. But BT is not an option here? I'm looking to either pay with cash or pay with CC. There's a 2% surcharge to pay the Solicitor via CC, so £120. But again, that is manageable.0
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You plan to borrow money at 2% + any CC fees to save it at 1.5%
Not that smart.0 -
There are no other CC fees. The savings are actually my mother's money which I would prefer not to touch. Thanks for the blunt message though.0
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Makes no difference you just replace them with the payments you would make and save 0.5%
You can always use the purchase option for normal spends to increase your savings.0 -
OK, that makes more sense to me. Thanks for that.0
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