Can I pay my Mortgage using my Credit Card

Clint_Bond

Have been wondering if Mortgage lenders allow this.

I pay my Mortgage every month and also have a Tesco Credit Card which I pay for all other purchases. I pay both religiously in full every month and on time, so I wouldnt incur any additional interest. If anything I would earn interest from the money sitting in my bank account longer.

As we are all cutting back our finances I pay for many family day outs and treats using the clubcard points scheme. So would like to collect more by paying the mortgage also.

I was wondering do banks allow this? Would it effect my credit rating in any way? Is their any other dangers or concerns I should have?

Thanks for any advice

naijapower

Good question. I would like to know the answer as well even though i feel most lenders would decline. They prefer bank direct debit for payment.
I would like to use my card for mortgage payment so i can earn airmiles..i.e
a simple process of paying with my card and transfering the money instantly from my bank to credit card account asap

koexelek

Depends on your lender.

I know C & G used to allow you to do that

foreversummer

Abbey was OK with it until at least last summer (when I mortgaged away from them). Whenever I rang them there was an option to press a certain number if you wanted to pay your mortgage using your credit card.

Foreversummer

_Andy_

Ring your lender and ask

handful

I'm not totally sure on this but I think you can with most lenders but it's like making a cash withdrawal (or using a credit card cheque) and you start paying interest immediately.

shop-to-drop

OMG I am absolutely amazed that you can do this. I had no idea no wonder people are in such dire financial straits. Unbelievable!

JayZed

Whether your mortgage lender accepts it is one question. The other thing you might want to look into is whether the credit card company treats it as a purchase or as a cash advance, which might attract interest even if you pay off in full each month.

Robert_Sterling_3

I do not think you could pay a mortgage by credit card.
On the other hand you could put the credit card in a cash machine. Take out the money and then pay your mortgage.
You would need to be insane to think that was a sensible thing to do......

..... but then what would I know ... see below.

Gorgeous_George

It's a stupid idea. For the sake of a few clubcard points you are causing your lender to incur high transaction fees.

It's greed and does not meet my test that I should treat people how I would like to be treated.

If they do allow it, I hope they stop it or charge a 5% handling fee.

GG

handful

JayZed wrote: »

Whether your mortgage lender accepts it is one question. The other thing you might want to look into is whether the credit card company treats it as a purchase or as a cash advance, which might attract interest even if you pay off in full each month.

That's what I meant in my post. It would never be worth it. I got caught out once using a credit card cheque (which I believe I could use to pay a mortgage payment if I was mad enough) to buy something and got stung bigtime. I was on a 0% transferred balance deal and the interest charged on the credit card cheque purchase would have continued until the transferred balance had been paid off. Had to transfer again to get out of it!!:mad: