In this brief guide, we are going to discuss getting a mortgage on a credit card, if it’s possible and the considerations you should be aware of.

Can you get a mortgage on a credit card?

No, you won’t be able to qualify for a mortgage using the funds you have in a credit card as these funds do not belong to you and are another form of borrowing.

When considering your mortgage affordability, a mortgage lender will want to see how much disposable income you have per month and how much of this you can reasonably put towards paying for your mortgage each month.

Most mortgage lenders will not consider any fund you have on your credit card as “your funds” and even if you move these funds to your bank account, the mortgage lender will still take the debts on your credit cards into account when figuring out your mortgage affordability and discount any debts against your savins.

Can you pay for a mortgage with a credit card?

Yes, you can pay for your mortgage with a credit card by moving the funds from your mortgage to your bank account. Bear in mind that the credit card provider may charge you for doing this by levying a money transfer fee on the total funds moved.

Money transfer fees could be as much as 3%.

You could also pay for your mortgage with your credit card by simply calling the mortgage lender and making a card payment over the phone.

Another thing to consider when thinking of paying for your mortgage with your credit card is that your mortgage lender may not approve of this.

Some mortgage lenders will include in the mortgage contract that you cannot pay your monthly mortgage repayments with another form of debt.

Why paying for your mortgage with a credit card may not be good?

Paying for your mortgage with a credit card may not be a good idea as your credit card provider will charge you interest on any used funds from your credit card once your next statement period begins.

The APRs on credit cards are usually very high and this means this cost of borrowing could potentially cost you much more than you may have first imagined.

Credit card interest is also compounded interest which means that you could end up paying significantly more than you thought as your debt compounds.

This could lead you into much bigger debt issues and cause you to incur bad credit such as:

  • County court judgements
  • Mortgage defaults
  • Missed credit repayments
  • Bankruptcy
  • Home repossessions etc

Alternatives to paying for your mortgage with a credit card

If you are struggling to pay your mortgage then there are a few options you may want to consider before using your credit card to pay off your mortgage.

  • Borrow from your family or friends
  • Ask for a repayment holiday
  • Apply for support for mortgage interest
  • Use universal credit
  • Use a personal loan

Get free debt advice

Are you finding it hard to keep up your repayments on your mortgage then you could get free debt advice from the organisations below:

Citizens Advice Bureau

National Debtline

0808 808 4000

Consumer Credit Counselling Service (CCCS)

0800 138 1111

In this brief guide, we discussed getting a mortgage on a credit card, if it’s possible and the considerations you should be aware of.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.