Can you make a overpayment by Credit Card?

Financial_Savvy

This may be a stoozing question, but can you make an overpayment on your mortgage via Credit Card? I can overpay £500 each month penalty free. It would mean that I could borrow money interest free for the month and then pay the CC off which would be reducing the interest owed on the mortgage.

djm1972

Highly unlikely that you could do it directly - you would need to be able to specify the destination of the funds as a sort code / account no. / reference (where the reference is your mortgage account number).

You would be able to do it indirectly by BT'ing to your current account (from a card that allows this such as Egg) and then into your mortgage account.

mountainofdebt

I know that you can pay Abbey by a credit card but when I tried to do it with my Tesco Credit Card (well can you imagine the points????) I was told by Abbey that you could only do this if the mortgage was in arrears!

Financial_Savvy

I have the sort code, account number and ref number as I already make overpayments (although haven't recently with Xmas)

I think further investigation is required as it would be excellent if I could do this.

roswell

If its exceptional circumstances i would expect you could as a one off but in all honesty i thing your mortgage company will be more then a little worried if you did it every month as your effectively paying debt with debt even if you can pay it off each month the mortgage company wont know if you can / cant.

Financial_Savvy

It was only the overpayment that I wanted to pay by CC, not the regular payment as this comes out by DD.

[Deleted User]

Whilst waiting to talk to Abbey about something unrelated but to do with my mortgage, one of their voicemail options was to do with paying your mortgage by credit card.

I didn't select it but after speakinhg about my mortgage to them, I asked if I could start paying by credit card. He said the credit card option was only for people in arrears and who are at the stage where Abbey would be about to instigate proceedings.

So it seems - if you are in arrears - Abbey are happy to help you shift your debt from them to someone else - i.e a credit card. But a customer who simply wishes to use the card as an alternative method of payment cannot.

How ethical is that?