Paying a lump sum off your mortgage with CC

scoops82

Hi


Is it possible to pay a lump sum of your mortgage using a credit card - I seem to remember being told it is not but wondered why?


I was hoping to pay off a chunk using int free purchases credit card.


Thanks
S

Keekles

It's not often you can pay credit with credit; unless utilising a feature designed for it such as a balance transfer.

Very unlikely it would be accepted imo. Also to note - interest free purchases probably isn't inclusive of mortgage repayment.

JimmyTheWig

scoops82 wrote: »

Is it possible to pay a lump sum of your mortgage using a credit card

Almost definitely not.

I seem to remember being told it is not but wondered why?

Because mortgage companies don't take credit card.
If they did they would have to pay the credit card company a certain percentage of your payment. Why would they want to do that?

I was hoping to pay off a chunk using int free purchases credit card.

Your only option is to get a card that allows money transfers rather than balance transfers. Do a transfer into your current account then use this to pay off your mortgage.
See http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

scoops82

So I could still save on interest if I can find a 0% (or lower than my mortgage rate) money transfer deal.


That's helpful - thanks

getmore4less

scoops82 wrote: »

Hi


Is it possible to pay a lump sum of your mortgage using a credit card - I seem to remember being told it is not but wondered why?

Yes, but not direct and it will be a cash transaction.


I was hoping to pay off a chunk using int free purchases credit card.

that won't work it is not a purchase
Thanks
S

Just spend on the card and use the money to overpay.

there are low fee SBT cards about that you can do this with.(they seem to call this money transfer card these days)

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

JimmyTheWig

scoops82 wrote: »

So I could still save on interest if I can find a 0% (or lower than my mortgage rate) money transfer deal.

Yes, but you need to consider
* You will be charged a money transfer fee to do this, so factor it into your calculations
* You will need to make the minimum repayments on the credit card each month as well as paying the mortgage
* You will need to be able to pay off the card in full when the 0% deal runs out - it is a gamble to assume that you can transfer it to another credit card or increase your mortgage balance to pay it off