Pay off mortgage with credit card?

Ivrytwr3

Checked my mortgage rate last month, just logged in and it's gone from 4.25% to 4.75% - frick, wasn't aware of yet another rise.

In a few months my rate has now gone from 0.84% to 4.75%.

There's 2 years left paying £360 per month on a balance of £8200.

Would it make sense and is it possible to pay off on a 0% credit card? 

housebuyer143

I'm not sure you can, however you can put all of your other spending on credit cards and then over pay the mortgage with the cash saved. How will you pay the card off at the end though as that rate will be much worse than your mortgage rate. 

Altior

The 'trick' would be to get a money transfer card and a BT 0% card. Pay the mortgage liability with the money transfer, then switch the money transfer card balance over to the 0% BT card. Assuming of course that you can get enough credit, and the fees are reasonable (ideally nil). 

MWT

Ivrytwr3 said:

Would it make sense and is it possible to pay off on a 0% credit card? 

Not a great solution if you end up paying 3% fees on the whole balance vs 4.75% on a reducing balance...

I'm assuming no ERC?

Better to just over-pay as much as you are allowed...

Ivrytwr3

MWT said:

Ivrytwr3 said:

Would it make sense and is it possible to pay off on a 0% credit card? 

Not a great solution if you end up paying 3% fees on the whole balance vs 4.75% on a reducing balance...

I'm assuming no ERC?

Better to just over-pay as much as you are allowed...

Ah, yes, the fees But yes, no ERC.

Altior

£440 interest on the OP's figures and a BT transfer fee @1% would be £82. A no brainer. 

I don't believe they can get a fixed rate on this balance, so no ERC implication.

It depends upon how confident they are with financial gymnastics, though this example isn't especially complex. Run some eligibility checks on likely cards and fees you can achieve, and take it from there. Even if you don't clear the mortgage using the cards, there is plenty of room for offsetting the cost of the interest by stoozing currently. 

Bluebell1000

We got a 0% on purchases card and used the spare cash to clear our mortgage, so yes it's certainly possible. You'd need to decide how quickly you'd be able to pay off the mortgage if you did that, and be confident you could repay the card before the 0% ends.

MWT

Altior said:

£440 interest on the OP's figures and a BT transfer fee @1% would be £82. A no brainer. 

The trick is finding one that is below 3% at the moment though...

Altior

I haven't done a stoozing round since November, yes they aren't quite as good as they were then. Santander all in one is 0% fee with a £3 monthly charge. Which would do the bulk of the heavy lifting for the OP. I also got offered HSBC 16 months no fee, and a couple of other 2%ers.