Making up for shortfall when buying a house

22
Found 13th Feb
I know its not advisable to use credit cards to make up for shortfall in savings when buying a house, but trust me I have tried all options possible and I so so close - so please hear me out.

  • I am in the process of trying to take out a mortgage (most likely from Halifax) - so assume then having a 0% credit card through them or with Lloyd's isn't a very good idea? I refer to this post
  • I have a very small shortfall of 5k-10k to complete the exchange. I am wondering if I could use the credit card in some/any way to pay for all/part of the SDLT and/or solicitor fees? Failing which I can always divert all of my usual expenses to a 0% credit card to save up on my current account and hence have saving to pay the SDLT and solicitor.
  • Also is there a credit card which allows both 0% Balance Transfer as well as 0% Purchase at the same-time - I probably only need it for a year tops? Is this a good card to look at sainsburysbank.co.uk/cre…501?

I have exhausted the usual means of asking family - I am still checking with friends, as if all goes well I wouldn't need too much for too long - its just getting over the initial hump.


Thanks a lot for any pointers to nudge me in the right direction.
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22 Comments
I would suggest speaking to your financial advisor. So many pitfalls, and they may actually have better options.
No solicitor or mortgage company would accept credit card payment
having a CC balance will affect your mortgage affordability, and if it is a recent balance they will ask why.

in all cases, you need to show proof of deposit and how you accumulated it and the underwriting criteria states no part should be a loan of any type
Small short fall of 10k. You having a laugh.
have you tried different bank, eg nationwide does 5%LTV
there is no way you will get mortgage by using a CC or a loan..
part of the criteria for affordabiliy would be a requirement to repay all CC's prior to exchange

speak to financial advisor and if he cant help then you have to wait and save some more.
I have a small short fall in my Ferrari purchase, should i accept that i cant afford it yet and keep saving or should i buy more debt?
This sounds like this is a big financial stretch.
There is nothing wrong with using a CC to short-term finance your bills. I'd be inclined to have that line of credit in place before finalising the mortgage.
The key thing is to make damn sure you can support the level of borrowing for the period proposed. If there is any doubt over your income stream, forget it and save harder.
Edited by: "airbus330" 14th Feb
How do you know you have a shortfall if you don't already have a mortgage lined up?
Don't the Mortgage company normally do 1 final Credit Check before releasing funds. ?
fisco20011 h, 14 m ago

Don't the Mortgage company normally do 1 final Credit Check before …Don't the Mortgage company normally do 1 final Credit Check before releasing funds. ?


usually, yes, and any spikes in credit usage could lead to a reassessment or ultimate rejection of the mortgage
alankfc025 h, 25 m ago

Small short fall of 10k. You having a laugh.


Maybe I framed it incorrect - I said small because I already have 80k going towards deposits and to pay for most of the SDLT and solicitor fees and the shortfall is for part of the SDLT and fees plus the initial moving costs - also I have some monies lined up to come shortly (2-3 months tops) - but I can't wait coz we like the house so much.
airbus3302 h, 39 m ago

This sounds like this is a big financial stretch.There is nothing wrong …This sounds like this is a big financial stretch.There is nothing wrong with using a CC to short-term finance your bills. I'd be inclined to have that line of credit in place before finalising the mortgage.The key thing is to make damn sure you can support the level of borrowing for the period proposed. If there is any doubt over your income stream, forget it and save harder.


I know I can support the borrowing and even pay off the loan/borrowing on the CC - its purely a short term/timing thing as the property we like we don't want to lose it for this small amount which we can pay in the next few months easily.
joedastudd2 h, 28 m ago

How do you know you have a shortfall if you don't already have a mortgage …How do you know you have a shortfall if you don't already have a mortgage lined up?


I know because I already have the mortgage lined up and I did all my maths to work out my exact shortfall
solicitors may not accept credit card payments for their fees. you may not get enough credit on a 0% credit card to make up the shortfall.

you could apply for a personal loan after the mortgage is approved but i don't know if you would be approved if they knew you were in the process of buying a property so have to start paying a mortgage.
matwalaboy27 m ago

I know because I already have the mortgage lined up and I did all my maths …I know because I already have the mortgage lined up and I did all my maths to work out my exact shortfall



Check out other mortgage providers and see if they will lend the full amount or accept a lower deposit.

If you have money due in then chase it and see if you can get an advance on it.
Moving property is an ideal time for a clear out, but I doubt you can raise £10k just selling off unwanted/unused items.

Trouble is until the survey is done the sale price of the property is still flexible as it could unearth issues which devalue the property.
Personally what I'd do it raise enough to cover the deposit and stamp duty, submit the mortgage application then scrimp and save, work overtime, do odd jobs, sell anything you don't need (will cut down on the moving costs as well), etc to cover the rest.
Normally takes a couple of months for a sale to go through so with a bit of luck you can cover a chunk of the shortfall yourself then lend the remaining from family/friends.
joedastudd6 m ago

Check out other mortgage providers and see if they will lend the full …Check out other mortgage providers and see if they will lend the full amount or accept a lower deposit.If you have money due in then chase it and see if you can get an advance on it.Moving property is an ideal time for a clear out, but I doubt you can raise £10k just selling off unwanted/unused items.Trouble is until the survey is done the sale price of the property is still flexible as it could unearth issues which devalue the property.Personally what I'd do it raise enough to cover the deposit and stamp duty, submit the mortgage application then scrimp and save, work overtime, do odd jobs, sell anything you don't need (will cut down on the moving costs as well), etc to cover the rest. Normally takes a couple of months for a sale to go through so with a bit of luck you can cover a chunk of the shortfall yourself then lend the remaining from family/friends.


Thanks a lot that really does sound like a plan to me. On the family/friends bit - don't lenders usually ask for some form of gift declaration kind of thing to ensure the money isn't owed back to them? Also on the saving bit I was hoping to divert the usual monthly expenses like grocery, petrol, bills to a 0% card such that I can save a bit more - or would you say that's also going to get flagged up during the final checks? The mortgage has been agreed - offer letter issued - valuation done and solicitors are doing there thing now - thats the stage where I am right now.
adamspencer956 h, 53 m ago

having a CC balance will affect your mortgage affordability, and if it is …having a CC balance will affect your mortgage affordability, and if it is a recent balance they will ask why.in all cases, you need to show proof of deposit and how you accumulated it and the underwriting criteria states no part should be a loan of any type


Just had a mortgage application approved and I have 4 credit cards all with a large balance on didn't affect it one bit
I've lent money to family buying property before and as far as I'm aware they never had any issues.

If you have already submitted full application then that's when they do the credit check and they typically only do one check.
So in theory you could take out a credit card now, but personally I wouldn't risk it in case you end up having to switch providers or they decide to do another check for some reason.

You mention moving costs, if your planning on hiring someone consider renting a van yourself (or borrowing one from family and friends) and moving it yourself.
£50 or so for a days rental, plus a fuel and snacks/food/beers for the helpers is a big saving over having professionals do it.
Im no expert but a friend did this recently to fund a buy to let and maxed out cards for a year or two and paid up before the 0% expired, so no interest to pa. I assume the mortgate company gave the offer before credit cards were loaned on
Edited by: "Sandy1012" 14th Feb
If they wont accept credit card could you not transfer the cc money into your account?
cliosport654 h, 54 m ago

Just had a mortgage application approved and I have 4 credit cards all …Just had a mortgage application approved and I have 4 credit cards all with a large balance on didn't affect it one bit


of course it does

you can borrow less due to existing debt

i know, i've just done it too
adamspencer9513 h, 21 m ago

of course it doesyou can borrow less due to existing debti know, i've … of course it doesyou can borrow less due to existing debti know, i've just done it too


Well I must earn too much then
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