Paying off a mortgage with a Credit Card?

barneybeagle

A daft question maybe and I don't know if it is possible, but would I be able to pay an amount of on my 'flexible' mortgage each month with a credit card of which I would pay off each month. Better still if there is an 0% interest deal going for a few months I would 'I think' be saving across the board.

Just a thought, but is this possible and thinking about it would it be really worth the hassle???

Regards
bb

PoorDave

I can understand the point of what you suggest only if you were able to do a stoozing type operation, where you built up a debt on the card to pay the mortgage. I don't understand the point of paying by card, then paying the card off each month. Is that what you're saying, and if so, what advantage do you see?

HelpWhereIcan

IIRC, there were a number of people who used to do this to build up the points, cash back or other incentives that their card offered as well as to stooze payments for a couple of months.

The issue tended to be that there were only a limited number of credit card companies (eg. Egg, Virgin, Cahoot - using their card & flexible loan) that would allow a balance transfer to a current account and pay a rewards balance on it, which is essentially what you would have to arrange each month (as I do not recall a card that allowed directdebits). In the abscence of any rewards entitlement, it would be a stoozing excercise and probably best on overpayments (as the OP appears to suggest).

Alternatively, people would cancel their direct debit and ring in with card details once a month. The thing that prevented some people from doing this was that some mortgage companies would withdraw whatever deal you were on if you stopped paying by direct debit, and most would insist on payment being made by debit rather than credit card.

Another problem with this now is the amount that credit card companies can charge as a balance transfer fee which can more than wipe out the benefit to be gained from a rewards program or even an interest only period in a stooze scenario and most will not credit a balance transfer against any reward program.

IIRC the method was only around for a few short months before the card companies closed it down.

I do think that the OP is talking about making 'overpayments' with his card though and then stoozing this balance as well as getting charged interest on a reduced mortgage balance. Probably a lot of effort and will be very dependant on figures involved in terms of balances and rates.

barneybeagle

Thanks HWIC, much appreciated. Basically what you mentioned in your last paragraph was what I was planning/wondering if I could do. I don't think I'll bother with that avenue now.

Cheers
bb