Pay off Mortgage with Credit Card 0%?

AWOL_2

I have a BTL mortgage with Northern Rock (7.9% Variable) 80K. I am unable to shift it due to the current economic climate and the rent vs. interest ratio etc to another lender without incurring extortionately high fees.

I was therefore thinking, I have a decent credit rating, could i open up a 0% credit card deal and shift 10k or as much as possible over onto a credit card to help reduce the interest I have to pay at 7.9%.

Is it possible to make overpayments using credit cards (maybe not) or is there a way to do this? Anyone try this and been successful? Is it recommended? I am a responsible borrower just trying to reduce the monthly interest i am paying.

Welshlassie

Credit card cheque.

Does NR not have anohe product you can shift too? was the only option I could think off, unless the credit card you open will allow you to balance transfer into your bank account and then OP from there.

There are very few 0% BT cards out there these days and those that are tend to have a transfer fee. You might also have a problem gettig a high credit limit in this day and age. It has taken me 2 years to get a 10k limit with MBNA.

Daft_Pegasus

If you shift it onto a credit card what are you going to use to pay off the credit card when the 0% deal expires? I assume that it's not an offset BTL so you'll have to pay off the credit card someday unless you intend to continually swap the balance to another 0% deal as the current one runs out.

If you plan to try this I suggest you post this in the stoozing forum for some expert opinion.

Ben1982

There's a similar thread over at stoozing.com here, where tightbloke has done exactly this. With his mortgage he can claim back any overpayment amount (min £500), via BACs.
He's also exploiting the ~50days interest free period of creditcards in this way too.

EDIT: Also he's using 0% Purchase deals to do it and not Balance transfer deals, so doesn't incure BT fees

AWOL_2

I have a flexiable mortgage with Northern Rock, and I am allowed to overpay as much as I like and then claim it back (min £500 applies) but that suits me.
May be a way to save a fair bit of interest

Ben1982

AWOL wrote: »

I have a flexiable mortgage with Northern Rock, and I am allowed to overpay as much as I like and then claim it back (min £500 applies) but that suits me.
May be a way to save a fair bit of interest

Take a look at that thread I linked to, sounds like you have the exact same mortgage.

IT_nerd

How is he using 0% purchase? This system sounds very interesting.

Ben1982

IT_nerd wrote: »

How is he using 0% purchase? This system sounds very interesting.

It is, I wish I could do it. As for Purchases, he's calling up their collections department to pay some of his mortgage, they seem to allow a credit card as payment, and it goes through as a retail transaction (regular purchase).

He's also stopped his DD, and is paying by credit cards.