paying a mortgage by credit card?

[queenlex]

Hope this hasnt ben asked before and I think its in the right forum. Anyway before anyone jumps to conclusions I am talking about paying a mortgage by credit card and paying off in full every month.

So is it possible to pay by this method?

Many thanks in advance.

 

[monkeyboy]

Wow thats a risky game !

Its poissible but you would have to access the cash by withdrawing it from the card obviosuly which iyslef has its own cash adavnce fee.

If you can pay it off in full why do this?

If its a timing issue speak to the bank about changing the date to suit pay day better.

Insane idea........

 

[ClubMan]

I doubt that many (any?) lenders will facilitate collection of repayments from a credit card.

 

[Nermal]

If you can pay it off in full why do this?

1% cashback or something of that nature?

 

[ClubMan]

That's what I assumed alright.

 

[Ravima]

I would think that this amounts to a 'cash' withdrawal and would incur the penal interest rate from date of drawdown to date of payment, offsetting any 1% rebate.

 

[ClubMan]

Not all cards work like that. As I mentioned before with a PTSB VISA you will pay a 1.5% cash advance charge (subject to some minumum if I recall correctly) but will not pay any interest until the normal credit period has elapsed.

 

[OneLife]

i may be wrong - but i don't believe any lenders would allow you to pay the mortgage by credit card as should the mortgage default for any reason and the lender had to repossess the house - if the judge found out the lender was allowing you to service a mortgage via a credit card - it would be hardly viewed as prudential lending - allowing the customer to run up credit card debt to service a mortgage

 

[ClubMan]

You can't do it and

Are you sure that it's technically impossible? I suspect so but I don't know for sure.

YoOu would end up paying more interest even if you could.

Not necessarily. See my previous post.

I don't think that it's the best idea in the world either and certainly not something that most people should be considering but, who knows - if it is actually possible, is done by somebody with the discipline to clear the bill each month, does not involve any or significant charges/interest and the benefits (e.g. cashback etc.) accruing outweigh any costs then perhaps it is a good idea for some people?

 

[Stifster]

I'm pretty sure you can set up monthly standing orders on your CC so therefore it must be technically possible. Whether it is accepatble to a lender or not is another question (though at the same time the fact you have a DD or S/O on a current account does not guarantee that there will be funds in to pay the mortgage.)

Seems a bit mad though simply for the sake of gaining an extra month's credit.

 

[ClubMan]

Seems a bit mad though simply for the sake of gaining an extra month's credit.

We don't know that this is the main or sole reason. Maybe the original poster can explain why they might want to do this?

 

[Stifster]

My John Rocha (there you go) CC with AIB gives cashback so i await the reason with (only slight) interest.

 

[oopsbuddy]

IMHO there's nothing wrong with this at all, if it is permitted by the mortgage lender. You will have to have the funds in your current account anyway to meet the monthly mortgage repayment, so if this can be taken from your credit card instead, and the CC company is instructed to always take the full amount owed each month, what's the difference? 1% cash-back on every monthly payment is not to be sneezed at!! However I suspect it may not be allowed, but if it is, I'll go for it too!

 

[MrKeane]

A few years ago I tried to put every bill on my credit card to reduce the number of direct debits etc. that I was being charged for. The mortgage was about the only one I couldn't switch over. Everything else ESB, phone etc. gets paid by credit card now.

I have since switched banks so the direct debits are now free, but thats beside the point.

I don't think any lender would let you pay by credit card due to them paying the transaction costs which are 1.5% or something.

 

[Celt07]

Which CC companies offer this cashback? Is it 1% of your monthly bill?

 

[Satanta]

From this thread

Reward schemes

Companies such as Tesco (www.tesco.ie) and Ryanair (www.ryanair.ie) offer points every time you use the card in certain places. This can equate to a cash equivalent in that you can use points to avail of discounts on goods and services bought in Tesco or through Ryanair, so these cards can be a good idea if your usage pattern allows you to build up significant points.

American Express Blue card gives cardholders 1% of the value of all purchases as 'MoneyBack'. This allows the cardholder to earn 1c for virtually every €1 spent on the Blue Card. MoneyBack is calculated automatically, updated on a monthly basis and credited to your account every 12 months. The problem with American Express is that it is not as widely accepted as Mastercard or Visa, but if you use your credit card to pay for holidays, grocery shopping, eating out, petrol etc., it might be worth your while to maintain two credit cards account, for example, an American Express Blue Card (from Bank of Ireland-[broken link removed]) and a Zinc Card (a Mastercard from Ulster Bank-www.ulsterbank.ie). The Blue Card will give you 1% MoneyBack, so as long as you spend over €4,000 a year (on average over €330 per month), you will have earned enough to cover the cost of the Stamp Duty on the card, and everything else is money in your pocket. The Zinc card will give you a €40 reward if you spend over €6,000 a year (on average over €500 per month). So it may be worth considering whether you spend enough every month (on average) to take advantage of these offers.

As always, read the small print as terms and conditions do apply to these offers and watch for higher than average interest rates, fees, charges etc. on cards that offer loyalty bonuses.