Using cashback or reward credit card to pay mortgage

thenudeone

JuneS wrote: »

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.

I don't believe this at all.

And even if it did, it would almost certainly be deemed unenforceable under the Unfair Terms in Consumer Contracts Regulations 1999 http://www.legislation.gov.uk/uksi/1999/2083/contents/made

Unfair Terms
5. (1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.

The ability of a lender to throw you out of your own house even though you were solvent and fully up to date with payments, would, IMO, be such an imbalance.

poggles

thenudeone wrote: »

I don't believe this at all....

See the post immediately preceeding yours

ecraig

I think the OP raised a good question here though...

I don't see any reason why you couldn't apply for a, for arguments sake, MBNA/Virgin cc, balance transfer to your credit limit (factoring in the 4% fee) direct to your current account.

If your mortgage ltv % is, for arguments sake, is 5.79%, and your cc handling fee is only 4%, then you're quids in...right?

And how would a mortgage company get wind of this? You apply on Monday, the funds are transferred into your bank on Thursday, you overpay on Friday, and the details of your new credit haven't even hit your credit report yet - not that the payments team at the mortgage company would be performing another credit search....

planteria

doing it via your current account would be straighforward.
getting a mortgage company to take card payments, generating cashback/points in the process, appeals more to :A

michaels

Previous conversations have suggested that sometimes arrears Dept's will take cc payments but putting a mortgage into arrears just to do so seems a little extreme and not good for ones credit record. Shame really, making a 10k overpayment on my 4% Barclaycard would be a very attractive proposition.....

jamesml

Do you even get rewards points/miles on balance transfers?

Although I guess might still be worth it from a interest perspective in theory - wonder what the savings would be like.

planteria

no, but you do on Purchases.
i have made CreditCard payment towards to my mortgage, generating cashback, without going into arrears.

Tinytott

I've been in touch with HSBC and they say I cannot make payment direct by credit card. So, I would imagine that would substantially limit the types of cards you could use for this mechanism as you'd be looking at a card that you could use to transfer cash into your current account and this be treated as a purchase and acquire benefits/cashback. Anyone know of such a card???

planteria

no.
some mortgage providers will allow card payments, and some won't do.
i'm not sure whether Barclays do/don't, but I shall be testing them sometime soon.

andyg303

planteria wrote: »

no, but you do on Purchases.
i have made CreditCard payment towards to my mortgage, generating cashback, without going into arrears.

Very interested in this thread... Care to let us know which cards and bank you have managed to achieve this feat with then Planteria?