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Can I Overpay Santander Mortgage With A Credit Card?
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# 1
edinburgher
Old 18-10-2012, 5:56 PM
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Question Can I Overpay Santander Mortgage With A Credit Card?

I read the stoozing guide this morning

Will Santander let me make an overpayment with a credit card?
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# 2
happycamel
Old 19-10-2012, 12:11 PM
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You can ask them, but often they won't. Also remember that snoozing rarely applies to cash advances but to purchases. Be very careful of doing this.

A much safer way would be to get your 0% card, set it up on minimum payments. Then buy your groceries etc on the card and you could then overpay the mortgage with the difference. BUT, and it's a big BUT you need to be able to pay back the balance on the credit card when the 0% deal ends.

The safest way of stoozing is to put the money in a savings account. It may not pay as much as you could save overpaying the mortgage but you would know you can pay back the balance on the card before the deal ends. If you couldn't, and bear in mind the Santander wouldn't give you the cash back to pay off the card, then you'd be on about 18% interest which would instantly wipe out the saving you've made. The interest you get from the savings account could be used to OP your mortgage.
I'm a qualified accountant but please make sure you get expert advice as any opinion is made in a private capacity.
"A goal without a plan is just a wish" Antoine de Saint-Exupery

Mortgage overpay 2012: 10,815; 2013: 27,562
Mortgage start 264k, now 232k
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# 3
edinburgher
Old 19-10-2012, 12:58 PM
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Quote:
Also remember that snoozing rarely applies to cash advances but to purchases
I had thought (no better than a hunch) that just about every credit card transaction counted as a purchase (unless you were taking cash out of a machine)?

My thought process had been (and excuse me if I'm totally wrong):
  • Overpay mortgage using credit card (return = mortgage interest %)
  • Save money for overpayments in savings account (return = savings interest %)
  • Total return = sum of the above

I'd be happy enough with a 'vanilla' stooze if this won't work in practice, it just seemed a reasonable idea in theory.
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# 4
happycamel
Old 19-10-2012, 1:19 PM
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I don't think debt repayment counts as a purchase but you'd need to check with the card issuer to be sure and the mortgage provider that they will accept credit card payments. Mine wont, i guess because there are merchant fees.

I know you're sensible with money and looking for extra ways of making your money work for you, just from your diary, so just check everyone carefully
I'm a qualified accountant but please make sure you get expert advice as any opinion is made in a private capacity.
"A goal without a plan is just a wish" Antoine de Saint-Exupery

Mortgage overpay 2012: 10,815; 2013: 27,562
Mortgage start 264k, now 232k
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# 5
edinburgher
Old 19-10-2012, 1:26 PM
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Thanks happycamel - we'll just stick with our 2*Aqua credit cards for cashback now and stooze the rest in the traditional manner.

There's sometimes a bit of a disconnect between looking for spending incentives while trying to reduce spending at the same time. Cunning plans are all well and good, but not if they backfire!

Thanks very much for the input
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