How To Raise Buy-To-Let deposit out of Nothing
"credit cards are not recommended... well, normally"
UNDER normal circumstances, recommending Credit Cards isn't something we usually do. A recent Report by the Motley Fool has come up trumps with a card that betters interest rates offered by the typical mortgage products. For the report, 319 cards were analysed, showing how you can borrow at 4.9% for life!
what does that mean as a property investor?
You can now borrow the deposit to purchase a buy-to-let property at 4.9% APR using one of these credit cards, with interest only payments.. just like a buy-to-let mortgage.
what do I do when the bill is due?
Transfer your debt to a "lifetime balance transfer" card that charges a very low rate for as long as it takes you to pay off your balance. You can setup a monthly Direct Debit or Standing order, which takes out a monthly payment
what other benifits should i be aware of?
Unlike typical mortgage products, paying off your credit card will not have any penalty charges or maximum payment limits.
what other things are there to look out for?
You should note however that if you make any purchases using this card or use it to withdraw money, the transactions will attract interest at a standard rate. Look at the following table for the best rates.
UNDER normal circumstances, recommending Credit Cards isn't something we usually do. A recent Report by the Motley Fool has come up trumps with a card that betters interest rates offered by the typical mortgage products. For the report, 319 cards were analysed, showing how you can borrow at 4.9% for life!
what does that mean as a property investor?
You can now borrow the deposit to purchase a buy-to-let property at 4.9% APR using one of these credit cards, with interest only payments.. just like a buy-to-let mortgage.
what do I do when the bill is due?
Transfer your debt to a "lifetime balance transfer" card that charges a very low rate for as long as it takes you to pay off your balance. You can setup a monthly Direct Debit or Standing order, which takes out a monthly payment
what other benifits should i be aware of?
Unlike typical mortgage products, paying off your credit card will not have any penalty charges or maximum payment limits.
what other things are there to look out for?
You should note however that if you make any purchases using this card or use it to withdraw money, the transactions will attract interest at a standard rate. Look at the following table for the best rates.
| Credit Card | Lifetime Balance (Transfer Rate %pa) | Typical APR (%pa) | Minimum Income (pa) |
| Amex Platinum | 4.9 | 8.9 | £20,000 |
| British Airways Amex | 4.9 | 19.9 | £12,000 |
| Lloyds TSB Advance | 5.5 | 11.9 | None |
| Amex Nectar | 5.9 | 12.9 | £12,000 |
| Morgan Stanley Platinum | 5.9 | 15.9 | None Listed |
posted by Ben Jooste at 5:59 pm
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