Can I use 0% CC to pay off a chunk of my mortgage?

purply

Hi all,
Hoping you can help?
I'm thinking of applying for the 27 month interest free credit card(Clydesdale bank) so that I can pay off a chunk of the mortgage and then pay the credit card off for the 27 months. Is that at all possible? Would the bank I'm with (Santander) accept a CC payment?


Thanks!

[Deleted User]

Probably not.

You could do it via money transfer option, with associated fees etc.

purply

Thank you for your reply. Is there any reason why they wouldn't accept it? Will have a look at the money transfer option.


Thanks again

[Deleted User]

Mortgage lenders tend to only accept cards if you're in arrears.

But I wouldn't suggest that as a strategy.

purply

Financially I'm sound and can easily pay the payments on the CC. Just want to reduce the amount of interest I pay on the mortgage!

jonesMUFCforever

purply wrote: »

Financially I'm sound and can easily pay the payments on the CC. Just want to reduce the amount of interest I pay on the mortgage!

Why not just overpay the mortgage then?
Am I missing something?

mistakehappens

hi
i think you are looking at the wrong card, i have done the same with my mortgage and paid off a chunk from credit cards like MBNA 40 months 0% money transfer card, so basically i paid about £300 to use £7500 for 40 months.

tesco had a similar money transfer deal and also virgin credit cards does the same too

purply

Now this is more like it! Thank you.


Yes you're right, I think I am looking at the wrong card. I was about to apply for the Clydesdale CC and it only offered me £1200!! I want about £5000 which I can then pay back on a monthly basis.
Was looking at the virgin one but not sure what their credit limit is.




Now

mistakehappens wrote: »

hi
i think you are looking at the wrong card, i have done the same with my mortgage and paid off a chunk from credit cards like MBNA 40 months 0% money transfer card, so basically i paid about £300 to use £7500 for 40 months.

tesco had a similar money transfer deal and also virgin credit cards does the same too

saver861

purply wrote: »

Now this is more like it! Thank you.

Yes you're right, I think I am looking at the wrong card. I was about to apply for the Clydesdale CC and it only offered me £1200!! I want about £5000 which I can then pay back on a monthly basis.
Was looking at the virgin one but not sure what their credit limit is.

I'm not sure how you know what credit limit Clydesdale were offering if you have not applied for the card? They set the credit limit at the time of application depending on your credit report etc.

In the 90's and 00's I used 0% considerably for my mortgage, up to £100k at times. However I had an offset mortgage which meant that at the end of of the 0% rate I could either pay if off or BT.

MBNA were one card that gave cash advances at no charge so that was handy to build up the amount in the offset.

Do it the right way and you can cut years off your mortgage. I had around 10 years of 0% rate on my mortgage which meant I paid it off way sooner than expected.

MallyGirl

all the cards show representative figures based on £1200 balance. That is not necessarily what you would be offered. You do need a money transfer rather than a balance transfer.
I also stooze against an offset mortgage so I can be sure of always having funds to repay any outstanding balance before the 0% runs out

purply

Haha can you see how little I know about credit limits? I used the soft search by MSE and I assumed it would only give me £1200 based on that. Anyhow, I have applied for the Virgin CC and they have given me a credit limit of £6200 to play with. I just can't believe I have not heard of money transfers before!
Look forward to saving some money!

saver861 wrote: »

I'm not sure how you know what credit limit Clydesdale were offering if you have not applied for the card? They set the credit limit at the time of application depending on your credit report etc.

In the 90's and 00's I used 0% considerably for my mortgage, up to £100k at times. However I had an offset mortgage which meant that at the end of of the 0% rate I could either pay if off or BT.

MBNA were one card that gave cash advances at no charge so that was handy to build up the amount in the offset.

Do it the right way and you can cut years off your mortgage. I had around 10 years of 0% rate on my mortgage which meant I paid it off way sooner than expected.