Can I make a Mortgage Overpayment with a Credit Card?

_Andy_

Biciitalia wrote: »

Hi I have been overpaying my mortgage for the last 4 months. I am only allowed to overpay by 12000 per year with the Hali@x. I have just been told I can have a Hali@x CC with a balance of 9000 with 0% for 9 months - can I overpay using the card? Any suggestions greafully received.

Have you rung Halifax and asked?

Pb1967

Hi. Instead of paying your mortgage account by using your credit card directly, you could use your 0% card (we are using 2 with 14 and 15 months interest free) to pay for all the household purchases; food, diesel etc. The money then sits on the c/c account, building up each month. If you ensure you have an automatic payment set up with the c/c to pay the minimum monthly amount and also have set up a regular overpayment to your mortgage from your current account for the amount you would normally use for the household purchases. Then, as the deal nears completion, withdraw from your mortgage the amount needed to close your c/c account/s and in the meantime take another c/c deal so that you can continue to overpay again.

With good disipline (I.e. not buying unnecessary items due to 0% interest free on the credit card) and an automatic payment to both the c/c accounts and your mortgage, you not only will save interest on your mortgage, you will also build a good credit score.

Only negative is if you were to choose to take out a personal loan (for example, to buy a car) the amount of debt you theoretically show may restrict what you could borrow.

pawlala

Pb1967 wrote: »

withdraw from your mortgage

for most lenders, that's easier said than done.

MallyGirl

This is exactly the reason why we love our OneAccount mortgage. It's got hard recently to do 0% balance transfers from a 0% card but Tesco have just launched one so we will be applying for one of those. We used to stooze all the time - Egg was particularly generous with its credit limits.
You do have to be organised though - when its time pay off it is just like any other bill and gets paid from our current account which is also our mortgage account.
A OneAccount mortgage is just a really big overdraft - asking for a balance at the cashpoint is always hair raising