1,000,000 UK people pay mortgage with credit card!!!!!!

[Deleted User]

http://www.fool.co.uk/news/property-home/mortgages/2007/10/17/fool-news-the-credit-card-mortgage-trap.aspx

When this pops it will become a self-fulfilling prophecy, ie all drops will make more and more BTLs and debt ridden folk put their houses on the market. The market floods and collapses.

BTW over 1 million subprime uk mortgages too, problably not all the same million folk thay pay with their plastic either!!!

Doomed ay Doomed.

save-a-lot

Did not realise you could make a mortgage payment with a credit card... but if you can and are savvy then you could earn cashback from a credit card and then always pay it off monthly.

ashcarrot

yeah I dont think you can they must do a balance transfer or something, but If you can I'm cashbacking mine

AndrewSmith

The majority of lenders do not accept credit card payments because you are technically borrowing to make a payment to a loan.

The people in the article used their cards to get a cash advance or balance transfer, then paid in cash over the counter to their mortgage company.

[Deleted User]

Apparently they have been withdrawing the payments in cash and paying it in, which is even more worrying as the rate is more extortionate and instant.

The picture that is forming here is starting to appear as bad as america, people have been doing desperate and unsustainable things with the housing market.

free4440273

Yant1 wrote: »

http://www.fool.co.uk/news/property-home/mortgages/2007/10/17/fool-news-the-credit-card-mortgage-trap.aspx

When this pops it will become a self-fulfilling prophecy, ie all drops will make more and more BTLs and debt ridden folk put their houses on the market. The market floods and collapses.

BTW over 1 million subprime uk mortgages too, problably not all the same million folk thay pay with their plastic either!!!

Doomed ay Doomed.

Just watching it on Channel Five now, scary stuff. good post Yant1

Moorepart

VVery worrying news item. Adds to the sense of impending crisis.

The level of debt is approaching unsustainability, we're going to see escalating repossessions, dipping House prices, there are huge warning signs for the British economy.

free4440273

^agreed. at the risk of sounding like a broken record - The Fed and BofE will probably come to the 'rescue' with rate cuts (I think .50 by BofE in November). Neither are concerned about inflation...

shays_mum

Man! i would be rolling in it if i could claim all the cashback that involved!!, my lender does'nt allow it damn!!

Gorgeous_George

I cannot disagree with the title of this thread as I do not have access to the data. Also, I accept that many people will be struggling to meet their mortgage repayments and will resort to using their credit cards.

However, this 'survey' was undertaken by Shelter. I wonder whose names and phone numbers they targetted. I doubt it was people like me who pay their mortgages by direct debit without a problem.

GG

Dan_Collins_2

Some lenders will, my bank account went a little mad after losing my debit card, long story but I cocked up a transfer from my business account to bank account (Once a quarter I get this wrong for some reason), anyhow I made a payment on my mortgage with a credit card, they would only do it because the DD bounced but it was before a retry!