Using credit cards to pay mortgages 'isn't necessarily a bad thing'
Published On 25 October 2007
People who use credit cards to make their monthly mortgage payments are not necessarily risking financial ruin, an industry expert has said.A recent study by Shelter's housing and homelessness magazine found that more than one million people in the UK have used credit cards to cover mortgage repayments in the last year.
However, Stephen Rose, director of Debt Advice Bureau, explained that some people are paying lower rates on their credit card than they are on their mortgage.
"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," he 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."
A recent study by CreditExpert.co.uk found that the vast majority of homeowners in the UK were unaware what the impact of rising interest rates would be on their mortgage repayments.
