Using credit cards for mortgage 'not necessarily bad'
29 October 2007
Using credit cards to pay for mortgage costs is not necessarily a bad thing according to the director of Debt Advice Bureau.
Stephen Rose explained that if somebody's paying considerably less on their credit card than they are on their mortgage then it's a good thing, but if they're paying more on their credit card than they are on their mortgage then it's a bad thing.
More than a million householders have used credit cards to pay their mortgage or rent in the past 12 months, according to a new survey published by ROOF, Shelter's housing and homelessness magazine.
"If people are using credit cards it may mean that there are cash flow problems anyway, it really depends what they're paying on the credit card versus what they are paying on the mortgage. If it's a simple credit transition then they may be able to benefit from doing this," Mr Rose explained.
"There are people out there who have technically bought a house on a credit card and they've done very well. I bought my first property off the back of credit cards and the credit cards were a hell of a lot less than a mortgage."
