I never had a credit card.

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I think I want one now. If I apply via a banking app the answer is no. The thing is I have no salary income. What I do have though is savings interest both monthly and annual which I would call income, currently over 15k and very likely to improve greatly over the coming months if not years ahead. Is their a work around to convince a bank to give me a credit card knowing full well I have large capital assets.

 

Also by the same definition above could I apply for a short term mortgage?

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15k per annum

DullGreyGuy

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I think I want one now. If I apply via a banking app the answer is no. The thing is I have no salary income. What I do have though is savings interest both monthly and annual which I would call income, currently over 15k and very likely to improve greatly over the coming months if not years ahead. Is their a work around to convince a bank to give me a credit card knowing full well I have large capital assets.

 

Also by the same definition above could I apply for a short term mortgage?

As you are earning less than what someone on minimum wage would be taking home you options for credit are going to be limited. You could try with whichever bank you mainly use as you'll be a known quantity to them and they may be more lenient or apply for a sub-prime product for those with bad/no credit as they aim at lower earners as well.

In principle, if you have an unencumbered property, you could get a mortgage but with product fees and/or interest you'd probably need a good reason to borrow rather than use your existing capital 

Robin9

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15k per annum

On this basis you have capital of about £350,000  (4%)

daivid

What is your reason for wanting one? If for short term borrowing you may not get a decent card for this with no history of managing credit. If for added consumer protection you may get a subprime card with low limit that you can pay in full each month costing nothing whilst building up a history to get a better card in 6-12 months. Try the eligibility checker on the main MSE site - then double check the providers own eligibility checker for any promising options.

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Thank you all for your time. Last time I checked with the NatWest banking app it was £12,000 for a basic credit card. Here is a bit more meat. I have 500k in cash savings currently in easy access and fix accounts. This sum in not being eroded by expenditure, inflation yes!

Basically, I would like to put most of this in long term 5 year fixes certainly above the 5.10% saving rates. The mortgagee will know I have a large capital assets, just I can’t get easy access to it....yet.

It’s been over 20 years back since I had my last mortgage so just don’t know how things work now, especially when the circumstance are different and in my favour.    

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daivid said:

 If for added consumer protection you may get a subprime card with low limit that you can pay in full each month costing nothing whilst building up a history to get a better card in 6-12 months. Try the eligibility checker on the main

Like I said no credit card history, so unsure how it is. Thank you, I will look into this.

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When subprime is mention, I’m always thinking of the failed American housing system, so this is news to me.

DullGreyGuy

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When subprime is mention, I’m always thinking of the failed American housing system, so this is news to me.

Its ultimately the same, high risk customers being given credit at high rates to reflect the risk. The two issues with the US was firstly the level of lending being given was too high so when the borrower defaulted and the property was repossessed the debt wasnt fully covered and secondly the receivable of the mortgage was repackaged and resold as investment products to normal investors without clarity of what they were really investing in. 

Here we are talking about unsecured debt and so limits are relatively low and losses therefore limited on default plus rules on being able to package the receivable up as an investment instrument have changed meaning retail customers cannot buy such products.

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Forget about the mortgage query, it was a half-hearted and clearly I haven’t thought this out. Just really wanted to know if a bank would loan me a short term mortgage, knowing I haven’t a job, but backed up with a large cash asset.    

DullGreyGuy

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Forget about the mortgage query, it was a half-hearted and clearly I haven’t thought this out. Just really wanted to know if a bank would loan me a short term mortgage, knowing I haven’t a job, but backed up with a large cash asset.    

As long as you arent spending the capital and only relying on the returns then yes (and assuming you have an unencumbered property to loan against) however with an income of £15k the amount they will lend is small and the APR relatively high. A random check on MoneySupermarket assuming a reasonable value unencumbered property gave a 2 year mortgage for £11,000 at APRs ranging from 5% to 17%

An unsecured personal loan could come in at a lower APR and given your current rate of return it makes little sense to borrow the money -v- using the capital for whatever it is you need.