Paying deposit on credit card

PasturesNew

You cannot borrow the deposit for a house.
It is against the rules.

frank.hopper

Polovski wrote: »

cheers for replies - if i tell you a bit more about the situation it might help...

The house i have seen is a repo - it is at £30k under everything else on same estate.
I am selling a property due to divorce and should clear £20k on it - that will be mine so that is how i intend to repay the credit card debt - i know that the sale will take a while and that i stand the best chance of the new property if i have no chain - and i know i have to move fast on it to get it or it will go.

I really cannot see the price of houses on this estate dipping below the £85k asking price when stuff is still selling for £115k.

Does that change anything or does everyone still see this as a big no-no - advice much appreciated

Reckon you've already made your mind up go for it,

Benefits_Blagger

basically you need to get cash off your card, but make it look like a "purchase", trying to withdraw it as cash will not only send flags to the CC company it will be next to impossible.

there are few ways to get cash from your card.

one is to deposit at ladbrokes, do a few low risk bets (offset them at an exchange, check out gamling introductory offers forum for more info) , then go and collect the cash from a ladbrokes shop. its unlikely they will have the cash to do this, but should give you a nice cheque to go and deposit at the bank.

been a few years since i done this, but it might/should still work.

another way is to have your own CC machine or a friend to have one, swipe the card through and it will goto the destination bank account as cash.

one final way, but probably the highest in terms of "transaction fees", is to deposit at neteller and withdraw the money as a cheque, again you will have nice clean cash to deposit at the bank.

neilp

Is it really against the rules to borrow to fund the deposit for a property? I am NOT suggesting it is a good idea, but know plenty of people who have taken out loans for deposits on properties. Indeed, Martin Lewis's mortgage guide specifically mentions that this may be an option.

Incidentally, provided - and only provided - one is able to pay it off in full at the end of the interest free period (and I realise that is a very big if), I would have thought that funding all or part of a deposit on a 0% credit card actually made good sense. I realise this may not be possible in the context of the current credit crunch, and that for some - or maybe even many - people, taking on extra debt under any circumstances is unwise, but from a purely financial point of view, funding a major expense with 0% debt is a rational and prudent thing to do.

carolt

Would just be wary that in a falling market, you may not get the 20K you expect to clear on your current house - if I understand your post correctly.

And the fact that other houses are asking 115K doesn't mean they're actually selling at that - do you have any very recent sold prices?

What if you can't sell your house - will you be paying two mortgages at once?

Also, whilst 85K-115K might seem like a big difference, in a falling market, that difference can be eroded quite quickly (if indeed that is current selling price, rather than asking price).

If the worst came to the worst, could you afford to pay off the mortgage and credit card debt?

Also, doubt you'd get a 0% credit card deal - they're now all but non-existent and come with fees of typically 2.5-3% upfront.

And I doubt lender would be happy if they knew about it.

Most importantly, why on earth are you looking at buying interest only? If you can't afford a repayment mortgage, you can't afford to buy, particularly in a falling market. At least with a repayment mortgage, you've got a property to show for it at the end of the 25 years or whatever. With interest only, you expose yourself to all the risks of negative equity with none of the benefits. Interest only mortgages only make sense in a rising market. Right now, they're madness, IMHO.

Mutton_Geoff

Take a look at https://www.stoozing.com. What you use the money for is your choice. Handled carefully, you can raise the deposit and some of the mortgage amount too if your credit rating is there.

chappers

Benefits_Blagger wrote: »

basically you need to get cash off your card, but make it look like a "purchase", trying to withdraw it as cash will not only send flags to the CC company it will be next to impossible.

there are few ways to get cash from your card.

one is to deposit at ladbrokes, do a few low risk bets (offset them at an exchange, check out gamling introductory offers forum for more info) , then go and collect the cash from a ladbrokes shop. its unlikely they will have the cash to do this, but should give you a nice cheque to go and deposit at the bank.

been a few years since i done this, but it might/should still work.

another way is to have your own CC machine or a friend to have one, swipe the card through and it will goto the destination bank account as cash.

one final way, but probably the highest in terms of "transaction fees", is to deposit at neteller and withdraw the money as a cheque, again you will have nice clean cash to deposit at the bank.

God BB you don't half come out with some bolloxxxxx, not only is what you are describing essentially money laundering, not that you need to launder already legit money. But it will still show up as outstanding credit and be set against affordability.
Withdrawing cash will not send any flags to the CC company, most cards have a cash advance limit varying from about 40% to 100% and they love you doing this as they can charge you big fat interest and flat charges for the benefit of doing so.



I think what you want to do is what Martin calls a super balance transfer essentially under the guise of a balance transfer you transfer cash to your credit card(only certain cards will allow you to do this). Sorry not really up to date on all this as credit isn't my thing anymore.

Borrowing a deposit is usually against the T&Cs of a mortgage but as we all know many do it.
I would agree with carolt if you can't afford to buy full repayment then I would have serious doubts about how you were thinking of paying your high interest credit card deposit back.
I would only use this sort of manoeuver if I had a fantasic credit rating so could stooze some free cash and was in aposition to pay it back fairly quickly.
I do know of a couple of people who have partly done what you are suggesting and it turned out ok for them but in the current contracting credit industry, I would be very wary that you don't find yourself trapped or even worse find lines of credit withdrawn.

Strapped

Why don't you just negotiate the extra off the purchase price? I'd imagine that would be your best bet.

Otherwise, take a look at stoozing.com to see how you can borrow short-term at 0% interest, if you really will be getting £££s back on completion of your other sale (although watch out for the intricacies of owning two properties at once - CGT springs to mind although you need professional advice, not a bunch of strangers on a website).

chappers

Sorry Polovski missed your post where you explained your reason for wanting to do this re: the selling of your other property.
I would still be very wary of doing this you should really speak to abroker who may be able to sort out some sort of bridging finance for you.