Credit Card for Mortgage Balance

sgill91

Hello, 

Please can I ask for some help/advice.

My 5 year fixed rate deal ends 31st March 2024. I will owe £30,000.

Could I get a 0% credit card for 20 months from HSBC to pay off the £30,000 mortgage and pay £1,500 a month off the credit card instead?

I have never had a credit card before so not sure how these things work.

Many thanks,

Sean

DullGreyGuy

Generally mortgage lenders don't accept credit card payments and even if they do your credit card would almost certainly treat it as cash not a purchase and so not get the benefit of a 0% interest. It therefore requires to you to get a "money transfer" card so you can get the cash and pay it over.

Getting a £30K+ limit is probably optimistic, I'm sure some people can/do but personally £15k is the largest initial limit any card issuer has offered me (later going up). Obviously depends on your credit history and your income. 

sgill91

That’s great - thanks. I will look into “money transfer” cards. 

Do you recommend doing an application for one and seeing how much they would lend me as a balance transfer? I see Virgin has one 

MorningcoffeeIV

sgill91 said:

Do you recommend doing an application for one and seeing how much they would lend me as a balance transfer? 

You don't want a balance transfer.

You want a money transfer.

born_again

Unless you are earning mega £££ the hopes of getting £30K limit is to say the least slim, if not non existent. I would lay money on even if your were a advance customer you would not get £30K
Might as well just overpay mortgage instead if you have £1.5k spare.

DullGreyGuy

sgill91 said:

That’s great - thanks. I will look into “money transfer” cards. 

Do you recommend doing an application for one and seeing how much they would lend me as a balance transfer? I see Virgin has one 

Firstly you need a money transfer not balance transfer card... the former transfers to a current account, the later moves a debt from one credit card to another.

I'd in the first instance use a tool like ClearScore which for a small number of banks will tell you if they will lend and what the likely limit is without a hard search. Some banks have their own pre-application checks but more focus on if you'll get a card rather than the limit.

MrFrugalFever

Halifax/Lloyds credit card eligibility checkers provide an estimated credit card limit.....that's your starting point! If it is no where near £30k then I'd shelve the idea.

What you'd pay on the fee (most MT cards are now 3.5-4.9%) needs to be taken in to consideration also, along with length of term offered at 0%. As suggested above, could you not make large overpayments?

rustytortoise17

DullGreyGuy said:

Generally mortgage lenders don't accept credit card payments and even if they do your credit card would almost certainly treat it as cash not a purchase and so not get the benefit of a 0% interest. It therefore requires to you to get a "money transfer" card so you can get the cash and pay it over.

Getting a £30K+ limit is probably optimistic, I'm sure some people can/do but personally £15k is the largest initial limit any card issuer has offered me (later going up). Obviously depends on your credit history and your income. 

Would it be possible to get 3 cards with a £10k limit? Or are you unlikely to be accepted for 3 in quick succession?

MorningcoffeeIV

With no credit card history, you're probably unlikely to get one at all, let alone three, all with high limits.

Given the fees involved in money transfers and your low mortgage balance, it'll be far easier just to pay it off the old fashioned way.

sgill91

Thanks - much appreciated 

Sncjw

Are you thinking you need to pay off the 30k by the end of the fixed deal. You don't need to do that unless your coming to the end of interest only mortgage. 

You can move to another fixed deal..usually you will have a fixed deal term and also a mortgage term..mortgage term will be the date that the mortgage should finish by.