Can I pay my mortgage with a credit card?

There are two indirect workarounds some people consider, but both come with significant costs and risks.

The first is a cash advance — withdrawing cash from your credit card and using it to cover your mortgage payment. Cash advances come with higher interest rates than standard credit card purchases and interest starts building from the day you withdraw the cash, with no grace period. There is usually a fee on top of that too.

The second is a money transfer. Some credit cards offer a money transfer feature, which allows you to move funds from your credit card directly into your bank account. You could then use that money to cover your mortgage Direct Debit. Like cash advances, money transfers typically come with a fee and interest charges, so this is rarely a cost-effective option.

Both approaches are expensive ways to bridge a gap. If you are considering either, it is worth exploring alternative options.

Can you pay a house deposit with a credit card?

In almost all cases, no. Mortgage lenders and solicitors do not accept credit cards for house deposits.

The sums involved are typically too large, and the risk of borrowing to fund a deposit raises serious concerns for lenders — it would suggest your deposit is not genuinely saved, which could affect your mortgage application. You would need to pay your deposit by bank transfer directly from your own funds.

Is there a way to pay your mortgage with a credit card without fees?

No — there is no method that avoids fees entirely. Even if you find a credit card with a 0% money transfer offer, there will usually be a one-off transfer fee to pay upfront. And if you use a cash advance, you will face both a fee and immediate interest charges. 

Either way, using a credit card to cover a mortgage payment will cost you more than paying directly from your bank account.

What to do if you are struggling to pay your mortgage

If you are finding it hard to keep up with your mortgage payments, the most important thing is to act early. Contact your mortgage lender as soon as possible — before you miss a payment if you can. Lenders are required by the Financial Conduct Authority to treat borrowers fairly, and they usually have dedicated teams to help customers in difficulty.

The right option will depend on your situation. It is worth thinking through the longer-term impact before making any changes — some of these can reduce your payments in the short term but result in higher costs or larger monthly repayments further down the line. Your lender should be able to talk you through what each option would mean for you specifically.

Switch to interest-only payments

If you have a repayment mortgage, your monthly payment currently covers both the interest and a portion of the loan itself.

Switching to interest-only means you temporarily stop paying off the capital and just cover the interest each month. This can significantly reduce your monthly outgoings in the short term, but bear in mind that you would still need to repay the capital at some point.

Under the Mortgage Charter, eligible borrowers can switch to interest-only payments for up to six months without an affordability check and without it affecting their credit score.

At the end of the period, your mortgage reverts to its original repayment structure — but your monthly payments will be slightly higher than before, as you will be repaying the same balance over a shorter remaining term.

Extend your mortgage term

Spreading your mortgage over a longer period reduces the amount you need to repay each month. For example, if you have 15 years remaining on your mortgage, extending to 20 years would lower your monthly payment — though you would pay more interest overall as a result.

Under the Mortgage Charter, eligible borrowers can extend their mortgage term without an affordability check and without it affecting their credit score. Unlike the interest-only option, a term extension does not automatically revert — though you can choose to shorten it again within the first six months if your situation improves.

Agree a reduced payment plan

If the above options do not suit your situation, some lenders can agree a temporary arrangement where you pay a reduced amount for a set period while you get back on your feet. This is sometimes called a forbearance arrangement.

Unlike the Mortgage Charter options, this type of support may be recorded on your credit file, so ask your lender to explain exactly what will be reported before you agree to anything.

What about mortgage payment holidays?

A mortgage payment holiday is an agreement with your lender that lets you temporarily pause or reduce your monthly repayments. Not all lenders offer them, and eligibility varies — most require you to be up to date with your payments before you can apply.

It’s important to know that payment holidays are not covered under the Mortgage Charter, so taking one may be recorded on your credit file. Your lender should explain exactly how it will be reflected before you agree to anything. Interest continues to accrue during a payment holiday, which means your payments will be higher once the holiday ends.

If you think a payment holiday might help, speak to your lender directly. And whatever you do, don’t simply stop your Direct Debit without getting their agreement first — missed payments without an arrangement in place will be recorded as arrears on your credit file.

Where to get free debt advice

If you are struggling with debt more broadly, free and impartial advice is available from:

• StepChange — a charity offering free debt advice and practical solutions
• Citizens Advice — free, confidential guidance on debt and money
• MoneyHelper — the government-backed money guidance service
• National Debtline — free telephone and online debt advice