House - Outright Purchase. Equity, MBNA and M&S 0% APR and Paypal

AlistairS

Looking to buy a house outright  ( 55 yo this year) having sold my home last year and am currently renting.  My equity is sittting in a CHIP 3.4% Instant Acess.  I haver applied and been accepted for the MBNA 0% for 60 days and M&S 0% for 18 months on purchases cards.  If i link these cards to my Paypal account can I pay friends and family as a 'purchase' so that I can effectively transfer the credit limits to my savings account to allow me to buy my home without paying interest to any of the card providers?  Or is there any other way to accomplish this?

RedFraggle

Numbers might help. How much, how are you paying it back.
https://forums.moneysavingexpert.com/discussion/5796866/use-a-credit-card-to-part-fund-a-house-purchase

AlistairS

The limits on the cards?  The 2 cards combined have a limit of around £7K.  Renting costs me £800/month.  With an outright purchase those funds are available for paying back 

dimbo61

The devil is in the detail !
Will £7,000 be enough with your savings to purchase outright ?
What happens if you need more ? 
Apply for a mortgage at 55 with some lenders offering mortgages up to 80
How about an offset mortgage ?
Your currently renting and hope to find the perfect retirement home ?

Fingerbobs

I'd be more concerned about the limits on PayPal. There are limits on how much you can send per transacion, and over a given period, as well as limits on how much you can withdraw to a bank account per transaction and over a given period, and I think they're all fairly low for personal accounts.

AlistairS

£97K Equity.  £20K Pension (25% Tax Free)  £3K from Family.  Looking to Retire @ 60.  Have a final salary pension currently worth £14K p/a and the other pension is worth £80K.  Still working and contributing to another pension

mi-key

Basically no. If you make a transaction on paypal as a purchase, then the person who receives it will have to pay fees on it.

You can send money to friends and family without either of you having to pay a fee, but only if it comes from your paypal account, bank account or debit card. If you use a credit card you will be charged a 2.9% fee plus handling charge.


 

ic

mi-key said:

Basically no. If you make a transaction on paypal as a purchase, then the person who receives it will have to pay fees on it.

You can send money to friends and family without either of you having to pay a fee, but only if it comes from your paypal account, bank account or debit card. If you use a credit card you will be charged a 2.9% fee plus handling charge.


 

This page suggests as long as there is no commercial transaction involved, its free: https://www.paypal.com/uk/webapps/mpp/paypal-fees.  I'm sure I've sent small amounts from a CC without any fees to pay a friend.  I suppose PayPal might take a look if the amount is in the thousands?

AlistairS

ic said:

mi-key said:

Basically no. If you make a transaction on paypal as a purchase, then the person who receives it will have to pay fees on it.

You can send money to friends and family without either of you having to pay a fee, but only if it comes from your paypal account, bank account or debit card. If you use a credit card you will be charged a 2.9% fee plus handling charge.


 

This page suggests as long as there is no commercial transaction involved, its free: https://www.paypal.com/uk/webapps/mpp/paypal-fees.  I'm sure I've sent small amounts from a CC without any fees to pay a friend.  I suppose PayPal might take a look if the amount is in the thousands?

I think you could be right.

I just tried a friends and family to my brother and it was  going to allow it to happen from the CC with no fees

AlistairS

OK sent my brother the credit limit on the card via paypal.  He then paid it to my current account with Starling and I have now transferred it to my CHIP account.  If it looks like I am going to have to pay interest I will transfer it back and pay it off

dimbo61

Not sure which part of the country you live in or the local housing market but hope that £120/130K will get you a freehold house that you can retire too.
Freehold rather than leasehold
House rather than flat 
If you do Retire at 60 then you have another 7 year wait for your state pension of hopefully £10,000+  and will be on £1200/£1500 a month for 7 years.