Shifting Mortgage to credit card

[AtW]

The money virtually belongs to the bank and they have the power to do what they see fit with it. It is only by luck and some government guarantee that you can get your money back out less their charges (legalised theft).

The money belong to you.

The reasonable charge to take money out is not a theft - banks need to earn money too, plus BACS transfers are free anyway.

[DimPrawn]

Call in ze bank and ask to pay by card?

I don't think many banks allow you to pay your mortgage by credit card Alexei?

But maybe they do now.

Yes, the banks will pickup all outstanding loans and credit cards in your name when applying for a mortgage and subtract the amount from any mortgage offer, so it won't help you with your mortgage LTV AFAIK.

[Old Hack]

Just out of curiosity, how do you shift some of your mortgage to a credit card?

If he had an offset mortgage, I assume he'll simply write himself a check into his account, or pay it over the phone or something.

Be careful with credit cards. Very. I know of people who got one too many cards, and all of their lenders upped their rate to over 20%, one to 34% as they were considered over leveraged.

I no longer have any credit outside of Mortgages, and they'll both be gone soon. Devils work all this debt.

[Old Hack]

I don't think many banks allow you to pay your mortgage by credit card Alexei?

But maybe they do now.

Yes, the banks will pickup all outstanding loans and credit cards in your name when applying for a mortgage and subtract the amount from any mortgage offer, so it won't help you with your mortgage LTV AFAIK.

These are the new rules due to kick in next year, in that all mortgage applications are subject to affordability, and all debts are out into the pot.

Having £20k on 0% still means you owe £20k.

[NorthWestPerm2Contr]

Presumably shifting your mortgage is going to count as a cash advance, so you should check the same 0% deal counts for that because often they do different rates.

After suffering engine failure a couple of years ago, I paid for that (£3.5K) on credit card and shifted it between a couple of 0% cards for about 4 years before paying it off last year. Another thing to check is the minimum payments, because one of the cards I was using demanded double the repayment than the other, even though neither were charging interest. The other trick they pull is always repaying the cheapest balance first, so if you're using the same card for buying stuff, it'll be the 0% balance that's being paid, not the latest purchases at the normal rate.

I know all the tricks around credit cards..... and always close down ones I am not using to keep getting the max balance transfer duration.

[Old Hack]

I know all the tricks around credit cards..... and always close down ones I am not using to keep getting the max balance transfer duration.

But you still have that debt, you're just moving it about.

[Kanye]

If the interest rate on your mortgage is 4%, this is only going to save you £40 a year per £1000 you transfer. Not really worth the effort unless you are transferring massive amounts.

As a contractor, aren't you able to just put more money into your mortgage?

Even on a pretty average rate I paid off my mortgage after 18 months contracting and could polish off a fairly chunky mortgage within a few years if I felt so inclined.

Agree with OP above that debt is the devils work and you're better off out of the clutches of the banks, even if you can grab a percent or two back through various schemes.

[NorthWestPerm2Contr]

But you still have that debt, you're just moving it about.

There is a purpose to moving it around - pay less interest to the bank.

[NorthWestPerm2Contr]

If the interest rate on your mortgage is 4%, this is only going to save you £40 a year per £1000 you transfer. Not really worth the effort unless you are transferring massive amounts.

As a contractor, aren't you able to just put more money into your mortgage? Even on a pretty average rate I paid off my mortgage after 18 months contracting and could polish off a fairly chunky mortgage within a few years if I felt so inclined.

Ok so for 5k that is £200/year which is £400 over the 2 year duration. £400 extra in my pocket is worth the 10 mins it will take me to do the transfer.

In addition to that it is going to bring down the interest rate I will have to pay to the bank due to the LTV. there we are talking about much larger amounts of money.....

[Old Hack]

Ok so for 5k that is £200/year which is £400 over the 2 year duration. £400 extra in my pocket is worth the 10 mins it will take me to do the transfer.

In addition to that it is going to bring down the interest rate I will have to pay to the bank due to the LTV. there we are talking about much larger amounts of money.....

No, it will not bring your LTV down, as now they include all debt as part of the process, and you already have that debt