Credit cards 'could be used to pay mortgage'

The Debt Advice Bureau (DAB) has responded to a recent survey by homelessness charity Shelter which found that over one million Britons are relying on credit cards to meet their mortgage or rent repayments.

DAB director Stephen Rose acknowledged that the findings could be indicative of the financial strains faced by many homeowners following five interest rate hikes since last summer and the tearaway pace of UK house price inflation.

He insisted, however, that no-one should rush to judgment in the wake of the report as - in many cases - paying for a mortgage on a credit card can actually be the most sensible option.

"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," Mr Rose noted.

Earlier this month the Bank of England reported that fixed-rate mortgage rates fell in September as the speculation grew that interest rates have peaked at their current level of 5.75 per cent.

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