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Can you pay a mortgage deposit using a credit card?
I was thinking whether I could arrange a mortgage on a house and pay the deposit using my credit card, in England. Indeed, in theory, I should be able to make a full purchase of a house on a credit card (if my card limit allows).
Similarly, it is possible to purchase an expensive car on finance and pay the deposit using a credit card - why should the same principle not be applied to the purchase of a house?
I would welcome any explanations. Thank you.
8 Answers
- 9 years agoFavorite Answer
You guys need to pay attention to where he is buying the house. In England a deposit means down payment or money towards the house. I would suggest you call up the bank your getting the mortgage on to make sure they accept credit cards (This is for Bank of England I bet).
Lenders in US do not accept credit cards since it is illegal to do so. Putting a house purchase on a credit card is not a good idea anyways unless your APR % is 0% or lower then the banks rate. Plus the bank will not allow to accept credit cards to buy the house in full since they take more of a loss due to credit card transaction fees.
You can use a credit card to use the down payment on a car but most dealers do not allow to use credit card to buy the car outright since they take a heavy loss on the credit card transaction fee of at least 2% or more of the amount charged.
- TavyLv 79 years ago
Not in the UK. They want hard cash. Lenders look at how much you can afford to pay back each month from your income. They would take the credit card payments into account.
UK
Funny how you say ENGLAND but still get replies from the USA.
- Anonymous9 years ago
Nope. Similarly you cant pay for the deposit from a loan. You need to be putting up some money yourself and a credit card/loan is not your money, it needs to come from savings.
Source(s): Homeowner in the UK - abdullaLv 44 years ago
that is what I did. I took a funds develop, were given the money and gave it to the monetary company as a deposit. back then they needed 5% down, yet were providing 4% funds back. So I effectively were given into the homestead for a million% down on a mastercard. the resources doubled in fee in the course of the three years I owned it. So it develop right into a fairly intelligent funding.
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- falsi fiableLv 79 years ago
No. Plus, there is no deposit to get a mortgage. Any lender demanding a deposit is crooked. No legitimate lender charges deposits. Many car dealers would happily accept a credit card for the DOWN PAYMENT (not the deposit). No real estate agent or lender will accept a credit card for your home purchase down payment.
Are you, perchance, referring to rate-lock or appraisal fees? Then, maybe yess.
- Anonymous9 years ago
No
