Credit cards used to pay overstretched mortgage payments
A combination of irresponsible lending and overstretched housing costs have caused many borrowers to turn to credit cards to pay their mortgages.
An estimated one million people in the UK said they have used a credit card to pay for mortgages or rent at some time over the last 12 months, according to the YouGov research.
This should come as a stark warning to all homeowners, as paying with a credit card charging around 15 to 18 per cent could add significant amounts to overall mortgage costs over just a short length of time.
Stuart Freeman, director of services at Community Housing Advice Service, said: “There is such pressure on people’s budgets that paying your mortgage or rent by credit card, then paying that card with another card is becoming the norm for many people.”
The number represents approximately six per cent of the overall population who currently make either rent or mortgage payments in the UK.
The poll of 1,979 found that the situation is worse in Wales and the Midlands, where around one in ten pay with credit cards, compared with just three per cent in Scotland.
