paying off a mortgage with a credit card

tony_b

I have an £80k mortgage in the Virgin One Account and looking to reduce my interest payments further, I have absolutley no other debt at all.

My salary is paid in each month and I use a Tesco's credit card for all my spend, each month I pay off my Tesco's card on the day its due meaning that I only spend from the one account at the last minute.

Although my £80k 'overdratf motgage' is slowly coming down how can I hurry it up, I was thinking of transferring the whole debt onto an interest free credit card and everytime the term is due up transferring it onto another card, biggest issue would be to transfer the whole £80k in one go?

Any ideas anyone?

marlasinger

I think it's impossible. You're effectively asking for an £80K limit on a credit card, when most people are lucky to get a couple of grand. Additionally, paying your mortgage off in one go would be likely to incur an early repayment charge.

getmore4less

Known as Stoozing (www.stoozing.com )

Problem is the BT fees often 3%
0% spend cards still work

I managed about £30k for over a year when there were no BT fees others managed much higher amounts.

Could just get a cheaper offset or spend less.

JA1000

If you can get a low or zero BT fee and they will do a bank transfer and you really are careful as to what you are doing i.e in 10 months or whatever the period is pay it back in full. Get it wrong and it will cost you, get it right and you can play beating the banks at their own game.

Good luck

waveneygnome

Tony B,

As others have said, I doubt you'll get anywhere the level of credit required nowadays (I once bought a house via 6 credit cards in 1998 though.....ahhhh they were the days......)

I you are looking to make dents into the capital, then I think you'd be better off switching to a cheaper rate than the One Account 3.65%.

First Direct currently offer a base rate tracker at BOE +1.89; smallish set up fees (I think £499 arr + £300 val), but you need a t LTV of 65%.

That should save you 1.34% which on 80K = £1072 per year.

WG