Devastated

[Life7]

I recently put an offer on a house which was accepted. Solicitor has been instructed and searches currently in progress. My mortgage is all set subject to my car finance being paid off before completion. I was hoping to complete in around 3-4 weeks time so hopefully won't be too long now. The mortgage offer will be withdrawn unless I can pay off the finance beforehand. They will still lend to me however it will be for a smaller amount and not enough to cover the house price or any other properties in the area really.

My mum had planned to get a credit card in her name and pay off the finance for me and then I would pay her back each month over the next couple of years. The balance is around £4,600.
I've just phoned the finance company up now to enquire about something, mentioned that I'd be paying the settlement figure within the next week or so and they've just told me they will not accept credit card payments!!! It has to be direct funds ffs!! I honestly don't know what to do at this point. My mum doesn't have that much in cash and I'm using all my savings to cover the deposit, broker and solicitors fees. I feel so angry at myself that I didn't check beforehand, but equally it doesn't say anything on the paperwork about not being able to pay it off with a credit card.

I've spent weeks trying to sort everything out and jumping through so many hoops to get this mortgage, it's not been easy at all but we finally got there and now this is going to ruin everything! I feel so gutted. I'm not even sure what I want from this thread, just so pissed off and upset.

It’s not advisable financially but it is probably possible for your mum to transfer from credit card to her current account, it will be more expensive this way but it solves the house problem potentially

Could your mum pay solicitors fees on her credit card & free up your cash?

Can your mum get a bank loan and transfer you the money? Then you pay her back the repayment amount each month?

There are ways around this, some of them already mentioned, BUTYOU need to have a really hard think about whether it's a good idea or not. Can you really afford the repayments alongside a mortgage? How much if a buffer do you have if the interest rate goes up? How long have you fixed your mortgage for?

Are you sure the house is worth what you've offered? Have you had a survey done? Checked the boiler etc?

I'm really sorry you're in this situation, I just don't want to see you getting in a worse situation.

I agree with Sunflower40 - can your mum pay some of the fees you were going to pay with your funds? That way it will free up your cash and she wont incurr the extra fees for a cash transfer.

@Ligglepiggle

It’s not advisable financially but it is probably possible for your mum to transfer from credit card to her current account, it will be more expensive this way but it solves the house problem potentially

This would be my suggestion for a short-term solution, but it will prove more expensive.

To be quite honest with you it doesn't sound like you can afford to buy a house??

I would have real concerns about the affordability of your mortgage. There's a reason your car loan is taken into account and if your mum takes out credit to free you of this you are putting both of you in a really tricky position. Surely you would then technically owe her the money so still might be issues with your mortgage offer. When I was a FTB I borrowed from my parents and was required to declare it so just think about whether this is right for you, don't plough in more money just because you have spent on searches etc if this isn't affordable.

I take it you haven't explained to the mortgage company your plan. They are willing to lend on the basis you pay off your outstanding debt. You are however planning to shift the debt out of your name but still pay it off. You need to declare all your debt to the mortgage company otherwise you are committing fraud. If you have to commit fraud to obtain the mortgage can you really afford it?

OP my mortgage lender said the same and my mum paid off the car and I paid her back and I 100 percent could afford both.

Could she get a loan instead?

Sell the car, repay the finance and buy a banger.

Some really good suggestions here, we will look into some of them. Thank you very much. In regards to affordability, I understand what some of you are saying but I have been renting on my own for the last 7 years paying £550 a month and have managed to pay the car finance along with all my other bills. I'm very sensible with money and I've always been a saver rather than a spender. My mortgage will only be £320 so I'll be saving a lot. I am only borrowing 80k (house is 87) which in the grand scheme of things isn't a lot compared to other house prices.

@CherryHug should I just continue to rent then like I have done for the last 7 years, paying £230 a month more than what my mortgage would be? I've worked really hard to save as much as I have over the years but no I don't have 87k in cash unfortunately!

@user1471457751 no I haven't told the lender but I told my broker how it was being paid off and she never said anything.

Just because the banks are being extra careful doesn't mean op can't afford it. My parents let me borrow £10,000 for a house purchase and I paid them back in 9 months whilst also making my mortgage payments, paying bills etc.

Let your mum pay solicitor etc with credit card and use your money to pay off the car or your mum could get a bank loan.

Good luck.

If your mum can't pay some of the costs of your purchase with her new CC, the only way round this I can see is for her to get a cash advance on her card and use that to clear the car loan. It will be expensive, but she may be able to transfer the debt to a 0% card in a few months time. However, it would be quite a bit cheaper if she got a loan for the money instead.

Or sell the car, as a PP has suggested.

I agree with others that your purchase seems very tight financially. Even if you put every penny you save from lower outgoings into clearing the debt to your mum, it would take 20 months to pay off the capital plus a few more to clear the interest.

If push comes to shove, sell the car, pay off finance, then buy another on finance.

Thankfully my grandma has offered to give me the money to pay the car finance off and my mum will also put something towards it make up the full amount. My grandma wanted to help me anyway and put something towards the deposit but originally I said no as I already had the money saved up. I really am very lucky to have such a caring and supportive family.

Thank you for all your replies and helpful suggestions.

Your mum is very very generous.

Not many would willingly give up all their savings for this.

Best of luck, I hope you get it sorted. It's so stressful!

Sorry missed your last post.

@HurryUpAndWait23 - It's my grandma who is going to help me with the car finance, my mum is contributing a small amount as well. I didn't expect my mum to use all of her savings. She was going to use a credit card in her name which I was going to pay back each month. It wouldn't have cost her anything. I would happily pay my grandma back to but she doesn't want the money. She wanted to help me with the deposit any way but I said no as I already had that money saved up. She's saved the day. Thanks very much.

@Life7 That's great news! God Bless Granny!
& Every happiness in your new home!

You're extremely fortunate to have such caring relatives.

@Pebbledashery I imagine OP is aware of that!

@DoubleTweenQueen thank you so much!

@Pebbledashery yes I definitely am! They always help when they can.