Paying off mortgage on 0% Credit Cards

stevewilliams_2

Hi,

I recently had a couple of endowments mature and have paid off all but £10,000 of my mortgage.

I noticed a few 0% over 40 month credit card offers and saw this as a chance to pay off the remainder of the mortgage at 0% (albeit with a small fee) rather than the 4.5% through the mortgage company.

However, it appears that I cannot make a mortgage payment with a credit card! I (naively) had no idea.

Of the 2 cards I have applied and been accepted for, 1 of them does not allow me to transfer to a bank account. I now know there are accounts that allow me to do this, but I would rather not apply for another couple of cards.

Is there a way around this? Hopefully I'm missing the obvious...

Thanks

Alexsas

well, there is no 'official' way round this, but what you could do is to make cash transfer from the card that lets you do that, and then do balance transfer to that card from the card has BT only deal, and do cash transfer from cash transfer card again, as long as they would permit you to retain cash transfer offer after you will have used the 'original' balance of that card....

Thrugelmir

stevewilliams wrote: »

However, it appears that I cannot make a mortgage payment with a credit card! I (naively) had no idea.

That's the same as paying in cash. The lender would incur a 2% odd charge if you did pay this way.

AnotherJoe

Buy everything you can on those cards. All your daily spending.evry five pound sandwich lunch, every train ticket, every meal out, whatever. That will quickly add up, and that is money you haven't spent from your bank account, so that money you would conventionally have used to pay off the credit card account, can be used to pay off the mortgage.
Odds are you'll hit £10k in a year or two easily, but you can pay off every time you hit a benchmark, let's say every thousand, or even every hundred if you can be bothered because every hundred pounds you pay off is £4.50 you don't need to pay the next year.

enjoyyourshoes

Why not remortgage to a better rate, by the sounds you have no early repayment charge and there are some great deals around at the moment, then as anotherjoe suggests overpay by utilising the 0% CC on purchases 9as long as you have the cash available to repay once the 0% deal completes)

[Deleted User]

£10k is likely to be too small an amount to remortgage.

MallyGirl

Alexsas wrote: »

well, there is no 'official' way round this, but what you could do is to make cash transfer from the card that lets you do that, and then do balance transfer to that card from the card has BT only deal, and do cash transfer from cash transfer card again, as long as they would permit you to retain cash transfer offer after you will have used the 'original' balance of that card....

I'd do this. You usually have a 60 day window to complete money transfers at 0%. There will be a fee for the money transfer to the bank account but it will be less than your mortgage rate. Just make sure that you can pay off all the card balances before the 0% runs out.

getmore4less

Have you worked out how much the interest would be if you just maxed your payments.

£10k 4.5%
£300pm £700 interest paid off in 36m
£600pm £346 interest paid off in 18m

how much are the fees on a £10k BT 2% would be £200 savings are quite small if you have the cash flow to pay off quickly.

Maxing out a spend card is true Zero% no fee.

If you can do a retention deal you should get the rate down anyway.

stevewilliams_2

Thanks all.

Unfortunately £10k is too small to remortgage.

I'll definitely use the cards for spending and transfer the credit from one of the cards to my account and put the money towards the paying the mortgage.

Am currently unable to pay any extra per month, but hopefully that will change at some point.

Thanks again all, the end is in sight...