Paying off mortgage using credit card?

[Deleted User]

Hi All

I have been reading the posts here regarding finishing off your mortgage early and is something I want to have a go at.

A colleague at work was explaining to me that it might be an option to use a credit card to pay off a mortgage. They were talking about transferring £50,000 onto a 12-month interest free credit card so that all the payments would be made on the card and none of it would be paid towards interest. At the end of the 12 month interest free period would mean looking for another 12 month interest free which seems a bit of a gamble to me! I am not sure if this can be done and would appreciate other people’s points of view on this.

At the moment I am limited to an overpayment on my mortgage of 10% of the outstanding debt, which is £50,000, so I could overpay by £5,000. I might pay this off monthly but, using the scenario above, would it be possible to pay £5,000 off my mortgage in one lump sum using a 12 month interest free credit card or is this not possible? I would imagine if it was then everyone would be doing it!

Appreciate any advice on this matter,

Regards, Paul

captain_fox

It sounds an interesting idea in theory but I would imagine you'd need nerves of steel - just think if you were able to transfer at the end of the period and you were stuck with 50,000 on your credit card paying 15%!:eek:
And the highest credit limit I have is £5,000. Also I'm not sure it would be too easy to get a £50,000 credit limit, unless you were stinking rich, which rules me out.
Cheers

[Deleted User]

Thanks guys for the replies. 'Stoozing' eh? I like it :T Must read up on that!

Jarlawuk

2.5% of £50000 would mean paying a silly amount in just transfer fee + you'd have to be on a very very very high salary to get a credit limit like that to start with.

[Deleted User]

Jarlawuk wrote: »

2.5% of £50000 would mean paying a silly amount in just transfer fee + you'd have to be on a very very very high salary to get a credit limit like that to start with.

Thought as much! I knew it was too good to be true. Mind you, I could always ask my boss for a very, very, very large pay increase!