Paying mortgage with credit card - bad idea?

[Seany88]

How bad is it to pay the mortgage with a credit card? Can you even do it? Will it affect your credit rating or how the lender will view you in future?

[Wacky Racer]

Seany88 said:

How bad is it to pay the mortgage with a credit card? Can you even do it? Will it affect your credit rating or how the lender will view you in future?

Yes, no reason why you can't do it, just to get you over a little temporary difficulty for a couple of months or so, but not really a good idea, because if you take out a cash advance you will be paying interest on top of interest....

Best explain the position, and be up front with your lender, and if they are a decent company, they may give you a mortgage "holiday" for three or four months............

It will probably affect your credit rating if you continue to miss payment deadlines

[Seany88]

I was thinking more of paying it with 'credit' i.e. no cash advance or won't they accept that?

Its not a desperate situation, just would make things a little easier until cash flow returns to normal

[jamesuk28]

Its a slippery slope, just putting off the enevitable and not a good idea. That said according to a reuters report last year up to 4 million brits pay our rent or mortgage this way. Which means, when the credit crunch finally bites, its going to be one hell of a mess.

[Wacky Racer]

Seany88 said:

I was thinking more of paying it with 'credit' i.e. no cash advance or won't they accept that?

I doubt it, simply because they would have to pay charges to the CC company, whereas if YOU took out a cash advance YOU would pay the fee, probably around 2%, so not too bad, this would also have the advantage that your lender never need know about it.

However, as has been said, it is a slippery slope, I would not advocate going down this route more than a couple of months.

Personally I would come clean with your lender, I am sure they will be sympathetic, they are very used to this, people losing their jobs, accidents etc......

Good luck anyhow.......

[Seany88]

Well I don't need to pay that way but it'd make things more comfortable. I may just make an anonymous enquiry with the bnak and see how they stand.

[Chrisgr31]

If you have a cash flow problem book an appointment to see them. You'll probably have two options, the first is a mortgage holiday, which is exactly what it says, and you won't pay for a couple of months, however the sum owed is rolled up and there is cumulative interest on it, so when you start paying again you'll pay more. Alternatively increase the term to reduce the current payments, you can always shorten the term or overpay when times are better.

DO NOT PAY IT ON YOUR CREDIT CARD! It will be treated as a cash advance so you'll have an instant changre, plus interest, and a high rate.