Paying mortgage with credit card?

[Deleted User]

If you're paying cash withdrawal charges, it's definitely not worth it. It means you're paying 3% on an amount rather than one twelfth of your mortgage rate.

It would only work if your mortgage rate was somewhere in the region of 40%.

If it is, look at remortgaging.

CommitedToChange

"She is saying that, if you over-pay using the credit card then pay off the credit card each month so you wouldn't be liable for interest because you pay off the full balance."

But why use the card if you pay it off in full every month - just pay that directly off the mortgage. Is it some weird deal to get points or cashback on the credit card - because otherwise you're just moving money around for no reason.

ViolaLass

CommitedToChange wrote: »

"She is saying that, if you over-pay using the credit card then pay off the credit card each month so you wouldn't be liable for interest because you pay off the full balance."

But why use the card if you pay it off in full every month - just pay that directly off the mortgage. Is it some weird deal to get points or cashback on the credit card - because otherwise you're just moving money around for no reason.

Presumably because you could may a chunk off the mortgage at the beginning of the month but not have to pay the credit card until your pay arrived at the end of the month.

Mortgage_Adviser

From the jargons used such as checking account it sound it is not a UK thing for sure. It would be lovely if it was possible to pay mortgage with credit card without the fees.

I just imagine paying offset mortgage with cashback credit card, moving the same money rounds and rounds every day. I could probably live of the cashback earned that way ;-)

pinklady21

But this would not mean paying off double the mortgage payment every month would it, as the credit card bill would also have to be repaid each month. So there might be a reduced debt for the first month, but after that all that is happening is that the mortgage debt is reducing about 2 weeks quicker, but is being replaced with a credit card debt that needs to be paid a few weeks later. Still not making sense to me....sorry.

ACG

LookinForaBargain wrote: »

The lady is based in the US so I don't know what the rules are there.

That was going to be my first question.

On your credit report, it would basically show as a late payment every other month.

Have a look at your credit report, there will be loads of zeros (assuming you pay everything on time) which would then go to a 1 if paid late.

So your payment record on your Mortgage would be 0 1 0 1 0 1 0 1 which would hammer your credit file and prevent you getting a normal mortgage again.

davidmcn

It may be a load of nonsense even in the US, though you may be able to pay off your mortgage by getting lots of hits on a "this is too good to be true" video.

clairebeth

If, as you say, you can't afford to pay double the payment each month by overpaying, then how can you afford to pay that same amount on the credit card and pay the credit card in full? What's the difference?

Overpaying is absolutely a valid possibility. Have a look at the calculators on here to see how much you could save by overpaying what you can afford. But if you can't pay the credit card, then all you're doing is going into credit card debt to pay off montage debt, not wise, I think.

Thrugelmir

LookinForaBargain wrote: »

FYI - My mortgage interest payments are £600 a month (ouch). If I can pay off the mortgage in half the time (15 years) then I'd save £115k in interest.

Then overpay now by whatever you can afford and within the limits allowed by your lender. Compounding is your ally.