mortgage advice

jj2_2

Hi all

Best I can say I guess is I have mucked up and need some advice.

I had reached the limit on my credit card and my monthly interest etc was increasing quite sharply, so I thought I would pay off my card in full (£500), cancel my direct debits on my council tax and mortgage and pay them on the card for a few month, getting the limit on the card down each month. so done this and all good yes?..... no, phoned the mortgage yesterday to pay and they don't actually take payment through credit cards.

Now I told the mortgage company when they told me this that I would take the money out cash on the credit card and pay it into the bank and pay by debit card, but as my mam pointed out when I explained to her my credit card company charge £1.50 per £10 cash advance, it really is not advisable to do this.

She has advised me to not pay the mortgage until 25th July (payday) as it won't actually be late as the due dates are actually the 1st of each month, so I will be paying 3 weeks later than due date but never a month.

As my luck on this seem to be dismal I thought maybe someone can tell me if this is the way to go?

Thanks

kingstreet

I expect not.

If your mortgage is payable in arrears, one day after the due date will put the account into arrears too.

This is not a sensible way. Putting your credit card repayment ahead of your council tax payment is foolhardy.

You can lose the roof over your head and if you break the direct debit plan with the council they can and will bill you for the remainder of the year instead.

jj2_2

Hi

Yes I get that I mucked up now, it never entered my head that I couldn't pay by credit card for my mortgage, (council tax isn't a worry they accepted the credit card.)

That is why I am asking for advice on which is the best way to go, I don't have enough money to pay the mortgage in the bank now, so should I pay the mortgage next pay (25th July) and incur charges or take it back out cash on the credit card at £1.50 cash advance on every £10 taken out.

Dan-Dan

surely it`s £1.50 per £100 , at worst ? things have changed a hell of a lot since last time i did it if not , but that`s over 10 years ago , even so , its a pit you wont get out of if you go down that route

You need to go over to the DFW sub forum for some good practical advice i think

ACG

I used to work for RBS credit cards although it was a long time ago...
Can you do a money transfer from your credit card to your bank account? Its usually cheaper to do this than withdraw the cash.

One thing to note though is that (when i was in that industry) most credit cards have what is known as a cash limit - and that was usually around 50-60% of the credit limit... things could have changed in the last 7 years though.

Not that you need kicking when your down so to speak but anything like this - you should check beforehand.

GMS

How will this work going forward?

You are due to pay on the 1st of the month but will pay on 25th. Will this mean you will always be late with monthly mortgage or can you pay on the 25th July then again on the 1st August?

Could you maybe ask the lander to move your payment date to 25th? Would cost you the additional interest for the period 1st to 25th but may help longer term.

Gary123456790

It sounds like you have bigger issues than this months bills. If your credit card bill was mounting up then you have more outgoings than income and this is the real issue, not how you can put your mortgage on a credit card.

Gary.

jj2_2

Thanks for all the replies.

Dan-Dan - you may well be correct, it is the 1st credit card I have had, I took out 3 separate £10's and was charged £1.50 cash advance 3 times. These are the only amounts I took out cash. I will see if I can find out the correct amount as per £100 isn't too bad given the alternative.

ACG - thanks, again I will check the amounts see if a cash transfer is another alternative. Also thanks for being understanding any you are so correct, it was just something that never occurred to me, in my mind debit and credit cards where more or less the same (I realize the concept is different but the availability I assumed was the same.)

Hi GMS - yes I think maybe I should phone the mortgage company and see if they can help in some way, while it hasn't worked out I surely should get points for trying to pay surely
Maybe they will give me some leeway somehow.

Hi Gary

Yes at the moment our finances are a struggle, unfortunately due to illness I can't work and so we only have 1 income coming in. Also the way the prices of everything are going up and income is coming down, things are definitely tight, we also incurred a £641 vet bill a few month back that really set us back we are trying to basically 'rob Peter to pay Paul' until we can get back onto our feet.


Thanks for the advice it gives me 3 options to look into, I appreciate it