Deposit by credit card cheque?

tcall

I'm sure i'll get flamed for even suggesting it, but is there any possibility of paying a 5% deposit by credit card cheque? Would the lender know about this, and therefore not allow the mortgage at the last moment?
Before you tell me how ridiculous I'm being, it's basically a timing issue... I'll be able to pay off the credit card debt within 3 months of the start of the mortgage, so it's just a short term loan in order to secure a property.

Joe_Bloggs

They will be able to find out about it and may get upset. This could affect their affordability calculations and cause delays. You have to be totally honest about where you got the deposit from.
I have been asked to untertake to repay a 0% credit card deal in order to get a final remortgage approval. Fortunately they have given me time for the 0% to run out. I thought I demonstrated where I put these stoozed funds but they have difficulty in checking on savings compared to debt. I bet my future lender would be peeved If I paid the old 0% deal with a new 0% offer.
J_B.

jmw254

I'm no expert, but you might have a problem!

When I bought my first place and had to give a deposit, I was told that only a bankers draft or building society cheque would do. High street bank cheques (and I supose credit card cheques) can be cancelled or refused. Someone in our chain tried this and delayed everyone by a day!!

Instead, do a super balance transfer and get you bank to produce a bankers draft at the right time. Perhaps earn a little bit of intrest too.

Hope your move goeas well.

Jon

Fatboy_NSS

No this shouldn't be a problem. If you've already been accepted for a mortgage they will have seen on your credit file that you've got a large available balance on a credit card and this will have been taken into consideration. Taking Jon's advice above you should check if they would accept a personal cheque, as otherwise you'd have to pay the CC cheque into your bank account a week in advance so it clears before you request the bankers draft.

Joe_Bloggs

Credit card cheques are additional borrowing often at very high interest rates, some as high as 20+% per annum. Using them is worse than paying with a credit card as they tend to charge interest as soon as possible like a cash transaction, rather than wait until a statement is due.
You can write one to yourself and later get a bankers draft for the amount but it is still credit card debt. A 5% deposit on a house will make a large and sudden dent in your outstanding debts. If you have to do it then balance transfer to a 0% card as soon as possible.

From the lenders point of view you have no equity in the property and they may feel you should be on a 100% mortgage. These have slightly higher interest rates. You could remortgage for a better deal once you have some equity in the property.
J_B.