IS there a way to do this ? use c/c to pay mortgage ?

working_mum_3

Hi,
my brother lives in NZ and he pays his monhtly mortgage using his c/c. This way he manages to rack up the airmiles in a big way.

Does anyone know if we can do this in the UK ?, thereby earning more cashback/airmiles/tesco vouchers etc? (depending on what card you use ? )

Thanks

Scouse_Mick

That's an interesting idea. I imagine its discouraged here though - using a form of expensive credit (credit cards) to pay off a relatively cheap debt is probably a recipe for disaster for those not able to pay off their credit cards every month.

Probably the easiest way to find out is to phone up your mortgage provider and ask them if you can do it. I've got direct debits for broadband and stuff on my credit card so its obviously possible if they'll let you.

If they don't allow it what about credit card cheques? There's no control over how you spend them. Not sure if they qualify you for airmiles and stuff though. Again you'll need to make sure you pay off the debt straight away as these things attract interest as soon as you spend them.

Interesting plan though. With the size of my mortgage I'd be getting a free flight every few months!

homer_j_3

credit card cheques incurr handling fees and are treated as cash in most cases. Be very wary. I am not sure if many lenders will allow paymnet by credit card. Then again its not a question that I have ever had to ask. As above -speak to the lenderl

working_mum_3

Shall speak with the bank then.... Scouse Mick, what other "bills" do you pay by C/C ? If i managed to pay most of the household ones direct debited to the card, then this would be useful too. I'd be interested to know what other "bills" people use their C/C for ... without getting too personal of course, purely to see if I can do the same thing.

_Andy_

Working Mum - Have a look here
http://www.v-flyer.com/forum/topic.asp?TOPIC_ID=11261&SearchTerms=utility
Forum is Virgin Atlantic related but should help

Joe_Bloggs

This is probably slightly of topic but it does relate to housing via council tax. My local authority allows me to pay my council tax via BACS/standing order ,direct debit, debit card and credit card. I can make credit card payments via Egg Money (in credit or not ) or a Sainsbury 12 month 0% purchase card. Will council tax be treated as a cash purchase by any of the card providers ? I Also have Amex Blue.
J_B.

Ian_W

Do you mean - will it be treated as a cash ADVANCE Joe?

I certainly wouldn't have thought so but I suppose the only way to be sure is to check with the credit card issuer. I would have thought it would have been treated as a purchase of services, personally, just like any other goods or services you buy on your cc. I may be wrong but I always thought the cash advance had charges from the start because they don't get a % of the merchant when you draw cash, whereas they do when you purchase something.

Joe_Bloggs

I agree with the service status Ian. I am prepared to try it out in any order and pay the consequences. My rate of repayment is flexible as have paid 12 months on a 10 month schedule for 2005-2006.

J_B.(This might appear as political but who are the NOC ?)

I used the search and found Thread 1 and Thread 2 in the credit card section. There is a risk of some councils charging a 2%+ surcharge for a credit card payment.

Scouse_Mick

Working Mum, I currently pay one bill via monthly standing charge on my credit card - this is my Virgin Broadband. This just appears as a normal purchase. If Virgin can charge monthly direct debits to credit cards in this way I assume other companies can too. I also pay my gas bill on credit card but I have to do this over the phone. I get airmiles on my credit card so try to put as much as I can on it and pay it off at the end of every month so dont pay interest.

Regarding credit card cheques the ones I have (I've never used them by the way the bank just keep sending me them) don't incur a charge but its possible they may be counted as a cash advance and incur interest straight away. Depends how complicated you want to get with this but you could arrange a direct debit to your credit card to go in on the same day and pay it off right away thus not building up any interest charges.

ppozma

I did try this with Nationwide a few years ago. Tried to pay off a further advance I had on my mortgage using my 0% credit card. Nationwide responded by saying they could not do this as it was transferring debt!
Nationwide no longer have my mortgage, and the 2 accounts I have now have the bare minimum in them for (hopeful) windfall bonuses!
Lovely idea though.....