Is it possible to pay remaining mortgage balance with credit card?

aberamanboy

Morning All

I am coming to the end of a fixed rate mortgage. I'm thinking that the balance at this point may be small enough (less than £25k) to somehow move to a cheaper method of borrowing? Balance transfer credit card? Is this possible somehow?

New mortgage rate (if I were to remortgage) is likely to be at least 5% as it stands, for two years, with early redemption fees and mortgage fees (potentially) on top.

If I move onto the SVR, this is 7%.

Main reason for considering this dilemma is that I have some money becoming available three months after the existing mortgage term ends and will be able to pay about half of the remaining balance off in a lump. Moving to an alternative type of debt may avoid mortgage fees, let me pay a lump sum soon and let me borrow at a cheaper rate.

Thoughts please?

Edit: I also have another lump sum available in 12 months that I intend to use to pay most of the remaining amount, but not all of it.

born_again

You can only balance transfer between Credit Cards.

You would need a money transfer card to transfer cash to you bank account. But you may find that you will get no where near the limit you want.

Ebe_Scrooge

As above, you can't do a balance transfer.

You may, possibly, in theory, be able to use an ordinary purchase credit card.  But most loans/mortgages won't accept payment by credit card.  And even if they did, it would be classed as a cash transaction by your credit card, so you'd be hit with cash advance fees and interest.  So either way it's not a viable option.

A money-transfer card may be an option, as cited by the previous poster.  But even if you can get a high enough limit, there will almost certainly be a fee to pay for doing the transfer, which may well negate any savings you make.

And the big danger with doing any of this - if you can't clear the credit card balance in full by the time the promotional rate expires, you'll start paying interest at the card's standard APR - which will be a heck of a lot more than the rate you're paying on your mortgage.  Yes, you may be able to do another balance transfer - but it's not something you can or should bank on being able to do.

aberamanboy

Thank you.

So, suppose I get a money transfer card with a big enough limit. What's stopping me from transferring the balance of that card onto a balance transfer card whenever I see fit (Other than a failure to get approval from the lender)?

I am not concerned about making the repayments. As I said, I have some guaranteed lump sums forthcoming that will pay the majority of the balance.

aberamanboy

Also, I assume that it is technically possible to get more than one money transfer card?

grumbler

aberamanboy said:

Thank you.

So, suppose I get a money transfer card with a big enough limit. What's stopping me from transferring the balance of that card onto a balance transfer card whenever I see fit (Other than a failure to get approval from the lender)?

This makes no sense to me.

With a money transfer card you can transfer cash from a CC to a current account (for a fixed % fee). Why would you need another 'balance transfer card' here?

aberamanboy

grumbler said:

aberamanboy said:

Thank you.

So, suppose I get a money transfer card with a big enough limit. What's stopping me from transferring the balance of that card onto a balance transfer card whenever I see fit (Other than a failure to get approval from the lender)?

This makes no sense to me.

With a money transfer card you can transfer cash from a CC to a current account (for a fixed % fee). Why would you need another 'balance transfer card' here?

Assuming that a single card's limit would be less than the total amount needed.

Edit: Added an apostrophe after seeing the info in Grumbler's footer. Don't want any tut-tutting going on the other side of cyberspace. 😝

fatbelly

aberamanboy said:

Thank you.

So, suppose I get a money transfer card with a big enough limit. What's stopping me from transferring the balance of that card onto a balance transfer card whenever I see fit (Other than a failure to get approval from the lender)?

I am not concerned about making the repayments. As I said, I have some guaranteed lump sums forthcoming that will pay the majority of the balance.

Nothing to stop you.

I once needed some cash and was surprised at how easy it was to get 8k from Virgin at 0% - there was a fee. I see it's now 4%, and criteria may have been tightened. But you won't know till you try.

https://www.moneysavingexpert.com/credit-cards/money-transfers/

Ebe_Scrooge

aberamanboy said:

Thank you.

So, suppose I get a money transfer card with a big enough limit. What's stopping me from transferring the balance of that card onto a balance transfer card whenever I see fit (Other than a failure to get approval from the lender)?

Nothing is stopping you - but you've hit the nail on the head, you may not be approved for a BT card (or if you are, it may not have a high enough limit to allow you to BT the entire amount).

aberamanboy said:

Also, I assume that it is technically possible to get more than one money transfer card?

Yes - again, subject to acceptance.  And you'll pay a fee for each transfer you make.

Being accepted is likely to be your biggest hurdle, with several application for new cards being made in a relatively short space of time.

To be honest, I think it could end up getting a bit messy.  And if you're banking on being able to do a MT, followed by another MT, followed by a couple of BT's, you're going to come unstuck when you get declined for one of them.

For the sums involved as described in your original post, I think I'd be tempted to stick with the SVR mortgage, get it paid off in a year's time (maybe a little bit longer), job's a good-'un.  It's your call of course, and yes we're all wanting to save money where we can.  But I can't help feeling you're playing with fire somewhat, for relatively little gain.

I hope this doesn't sound condescending - I'm just trying to be objective

aberamanboy

I hope this doesn't sound condescending - I'm just trying to be objective

Not at all. I appreciate the time you've taken to respond...... and you're probably right. My question has been answered.

Thanks to all who gave feedback. Unless anyone has any other bright ideas I am satisfied with the above comments. 👍🏻

grumbler

Another option - 0% purchases card - they are easier to get and you pay no fees.

Get a flexible mortgage, switch all your spending to a 0% card and direct all 'saved' cash towards overpayments.