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Using cashback or reward credit card to pay mortgage
Tinytott
Posts: 30 Forumite
in Credit cards
Hi, does anyone know if this can be done? There are a few cards out there which offer significant rewards if you spend £x per annum on the card. I've heard the Airmiles Amercian Express credit card can be used for this. Does anyone have any input or experience of this?
Ta much
Tiny
Ta much
Tiny
0
Comments
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No bank will accept a credit card for a mortgage payment. Or if they do, they will charge you enough to wipe out any savings you might make through rewards.0
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The only reason that most businesses accept CCs (and therefore have to pay merchant fees) is that if they didn't, you would probably go elsewhere.
You have no option with a mortgage payment (or a loan or an overdraft), so the mortgage company is not going to accept a payment by CC (possibly unless you paid the extra fees).We need the earth for food, water, and shelter.
The earth needs us for nothing.
The earth does not belong to us.
We belong to the Earth0 -
I can also imagine that if you're paying a mortgage with any kind of other credit, it doesn't look good in terms of your ability to pay. You might fall foul of this if you try to renegotiate a deal at a future date.
Your mortgage provider's first thought will be "struggling to pay - high risk!!!" rather than "cleverly using a credit card to earn a bit of free cash!"
I might be wrong, but in some cases, if a mortgage provider got wind of you being a potential high risk, they could demand that you repay the full amount immediately which would be an absolute nightmare, and cost a jolly sight more than you'd ever save from using the credit card.Mortgage at end 05/2007: £90200
Mortgage at end 08/2018: £71646 paid £18354 (20.5%)
MFD: :eek:Original:05/2042:eek:
Car Finance: £8225 : £6392 (22.2% paid off)
CC Debt (0% until 06/2020): £5640 : £4400 (21.7% paid off)
Age of Money at 31/08/2018 = 23 days
YNAB is changing the way I live my life....and spend my money!!0 -
Thistlewhistle wrote: »I might be wrong, but in some cases, if a mortgage provider got wind of you being a potential high risk, they could demand that you repay the full amount immediately which would be an absolute nightmare, and cost a jolly sight more than you'd ever save from using the credit card.
Indeed you would be wrong. And very comprehensively.
The mortgage lender cannot suddenly demand repayment if you are up to date and complying with your repayments, no matter what suspicion they might have about your creditworthiness and your future ability to repay it.
How do you think they would enforce such an action - repossession?Optimists see a glass half full
Pessimists see a glass half empty
Engineers just see a glass twice the size it needed to be
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Indeed you would be wrong. And very comprehensively.
The mortgage lender cannot suddenly demand repayment if you are up to date and complying with your repayments, no matter what suspicion they might have about your creditworthiness and your future ability to repay it.
How do you think they would enforce such an action - repossession?
Hi pvt,
I wasn't sure so thanks for putting me right.
It's still not something I'd like to test though.
TMortgage at end 05/2007: £90200
Mortgage at end 08/2018: £71646 paid £18354 (20.5%)
MFD: :eek:Original:05/2042:eek:
Car Finance: £8225 : £6392 (22.2% paid off)
CC Debt (0% until 06/2020): £5640 : £4400 (21.7% paid off)
Age of Money at 31/08/2018 = 23 days
YNAB is changing the way I live my life....and spend my money!!0 -
Indeed you would be wrong. And very comprehensively.
The mortgage lender cannot suddenly demand repayment if you are up to date and complying with your repayments, no matter what suspicion they might have about your creditworthiness and your future ability to repay it.
How do you think they would enforce such an action - repossession?
If you read the smallprint of almost any mortgage loan agreement, if usually gives the lender the right to call in the loan on about 28 days notice.
Whether or not any respectable mortgage lender would attempt to do this in the situation described (which is probably entirely artificial anyway as I don't know of any mortgage lender that will accept the monthly payment by credit card) is debateable; if such a foreclosure was made public, it would seriously harm the reputation of such a mortgage lender for a start.
But the right is there...0 -
No court will agree a repossession for one missed payment.If you read the smallprint of almost any mortgage loan agreement, if usually gives the lender the right to call in the loan on about 28 days notice.
Whether or not any respectable mortgage lender would attempt to do this in the situation described (which is probably entirely artificial anyway as I don't know of any mortgage lender that will accept the monthly payment by credit card) is debateable; if such a foreclosure was made public, it would seriously harm the reputation of such a mortgage lender for a start.
But the right is there...0 -
If you read the smallprint of almost any mortgage loan agreement, if usually gives the lender the right to call in the loan on about 28 days notice.
Whether or not any respectable mortgage lender would attempt to do this in the situation described (which is probably entirely artificial anyway as I don't know of any mortgage lender that will accept the monthly payment by credit card) is debateable; if such a foreclosure was made public, it would seriously harm the reputation of such a mortgage lender for a start.
But the right is there...
I very much doubt you would be able to find any evidence to substantiate that, but if such a clause was present in a mortgage agreement it would be manifestly unfair and, as such, completely unenforceable.Optimists see a glass half full
Pessimists see a glass half empty
Engineers just see a glass twice the size it needed to be0 -
I very much doubt you would be able to find any evidence to substantiate that, but if such a clause was present in a mortgage agreement it would be manifestly unfair and, as such, completely unenforceable.
As much as you may think it unfair and unenforceable, JuneS is correct more or less. When we bought our house our solicitor pointed out the possibility that the lender could demand repayment in full at any time, in our case subject to 3 months notice
http://www.mmbs.co.uk/Mtg%20conditions%207th%20edition.pdf (Section M13)
When I asked further about this, the solicitor said it was a very common type of clause that he finds in mortgage agreements. However it is very rarely if ever used, and if it was then people would just go and re-mortgage elsewhere.
When my sister bought her house, she was also alerted to the similar clause by her solicitor - she could have as little as 2 months notice.
http://www.leedsbuildingsociety.co.uk/introducers/solicitors/pdf/Conditions_England_Wales.pdf (section 3.2)0
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