Part Payment of House with 0% Interest Credit Card.

SuperAllyB

Something doesn't add up here. If you're not sure what house prices will be like in 4 months then how can you know you'll need an additional £5000 to be able to afford one?  Is the extra £5000 to give you enough for an deposit?  In which case you were misleading earlier referring to a cash purchase.

MallyGirl

You would also need to make the minimum payment each month and be absolutely sure you could pay it off at the end of the 0% period which is often only a year, maybe 18 months.
Guarantor loans have horrendous interest rates- please don't ask a family member or friend to do this.

MEM62

gizmo111 said:

jonesMUFCforever said:

MEM62 said:

jonesMUFCforever said:

If asked by the credit card why you want to borrow the money you have to answer truthfully - but by doing this you stand the chance that they will decline it. 

As far as I am aware, there no no such question when applying for a credit card.  

There is when you do a balance/money transfer )My last one was to a Lloyds credit card)

I've just done a Virgin Money Transfer and wasn't asked any questions.

I have been been asked either.  

jonesMUFCforever

Question to the OP then; what is the difference between paying £150 in fees on a money transfer card or £150 in interest on a loan - the net result would be the same?

BucketFull

Thanks again everyone, for your advice and suggestions.

OK, so offering to pay the solicitor's fee is out of the question!

I wish to avoid any option that involves 'interest' even if it works out cheaper than other options. Cost is not the factor in my wish to avoid interest.

SuperAllyB, I don't know if it's going to be enough. It would be enough now and I am hoping it would be enough in four months' time. According to many Estate Agents, house prices could even decrease in the new financial year. It's simple, if prices stay the same (or decrease), I can afford a house. If they increase, I can't. That is why I said "This amount could be the difference between being able to purchase a house and not."

MallyGirl, sorry, I didn't know interest would be involved in any way. Thanks for the tip, that won't be an option then. Nothing in the future can be predicted for certain but if all goes according to plan, I'd be able to repay in time.

Nebulous2 and jonesMUFCforever, your suggestion does sound like a plan! Thanks, I plan on repaying in full within the 0% period.

Thank you everyone.

BucketFull

Hi all.

I have a few more questions regarding my query.

I hope this is not a stupid question, but regarding the 0% credit card with money transfer option, can the card be from the same bank as the bank account which the money is going to be transferred into?

How long does the process take from the time of application to the bank account being credited?

As mentioned already, I would like to start paying back the money in four months' time. What would be the best way to go about this? Should I apply now just to check if my application would be accepted or not and then apply again in four months' time so that I know if I've got any chance of being successful and can plan accordingly?

My solicitor states that the money for purchasing a house needs to be in my account for at least six months for money laundering reasons. Would the credit card money transfer option be exempt from this rule since there will be the bank's own evidence that the money has come from them?

Thanks you for any advice.

lcc86

Why don't you look into whether a 5k mortgage has less interest than the fee for a money transfer? Interest rates are really low right now and you'd probably get a bit longer to pay it if you went for a 3 or 5 year deal. It doesn't sound like you've found a property yet so I'm confused as to how you know how much you need to borrow. If it's "only" 5k could you not save up instead? 

AbundantBudget

Given that you try to avoid an interest in any form can't you find a Sharia mortgage in UK? 

BucketFull

Thank you for your replies.

lcc86, regarding mortgage, please see the third paragraph of my post at 17 January at 10:04PM. I am confused as to why there is confusion in this thread about how I know how much I need to borrow! Haha. Doesn't everyone have a budget when it comes to purchasing anything? My budget is the amount I will have saved in four months' time plus £5,000. By the time I have saved up £5,000, house prices could have gone up by a further £5,000 at least!

AbundantBudget, thanks for your suggestion. I will look into this.

lcc86

But what if the interest is less than the fees? Not saying it would be but not sure what the aversion to a bit of interest is.