Can and should you pay your mortgage with a credit card?

Written by PayPlan on 19 January 2018

A common question, when it comes to mortgage debt, is ‘can I pay my mortgage with a credit card?’.

If you are considering paying your mortgage with a credit card, this guide breaks down whether you should do this:  



Can you pay your mortgage with a credit card?

Yes, you can use your credit card to make mortgage repayments if funds are tight, but it is not a recommended solution.

Many people do this to give themselves a little breathing space and to avoid falling behind with their planned mortgage repayments.

Should you use your credit card to pay your mortgage?

While you may have good intentions to pay back the credit card debt as soon as you get paid again, mortgage payments are often larger than the usual amounts you may put on a credit card – which can then cause issues if large amounts of interest are added on top.

This is because not only do you have the current month’s mortgage payment to worry about, you now have this extra payment on your credit card to clear on top.


This can make it tempting to not pay back the full amount on the credit card, which can lead to interest being added and the monthly repayments going up even more. It’s a vicious circle and one that can feel difficult to get out of.

You may believe that moving the payment to a 0% interest credit card is better than having a mark on their credit report. However, if you cannot clear the credit card debt before the interest-free period rolls over, this is when trouble can arise.


Instead you should take a closer look at the reasons why you are unable to make your mortgage repayments and tackle this, rather than simply moving the debt. Ask yourself:

  1. Are there any expenses I can remove to free up funds for my mortgage repayments?
  2. Am I paying off another debt that could be resolved via a solution, such as a debt management plan?



These could allow you to reduce your payments to a manageable amount, while still paying all of the lenders you owe.

Look into your finances and what is eating up your money – you may discover you are making payments you don’t recognise or no longer need. These could also go towards your mortgage payments and help you avoid having to use your credit card.

How to avoid using a credit card to repay your mortgage

A mortgage lender will always work with you to come to some sort of solution, if you are struggling to make your monthly payments. They do not want to repossess your home – this is a last resort if all other debt collection methods have been exhausted.

Instead of using your credit card, pick up the phone and speak to your lender about your situation. They may be able to offer a solution to help you get back on track. These could include:

  • A mortgage holiday – This is when the lender grants you a certain period of time where you don’t have to make mortgage repayments. This could allow you to build up funds again and sort your finances, without the worry of paying your mortgage. Of course, this will extend your mortgage period but this may be an option if you are struggling in the short term.
  • Moving to an interest-only mortgage – While many people try to avoid this type of mortgage – as it means you just pay the interest and aren’t really paying what you owe on your property – it is a good way of reducing your monthly repayments. You can plan on using this option for a limited amount of time and then, when you feel comfortable again, ask to move back onto a repayment mortgage.


If these options aren’t possible with your current mortgage lender, it’s best to speak to a free, impartial financial advisor. Our team here at PayPlan is available to talk through your situation – fill in our contact form to receive a callback or simply call 0808 278 6944.

Filed under Money Management

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

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