Needing money for a mortgage payment

plzsm

Apologies if these are dumb questions
but i have a mortgage of £130K with HSBC
they are offering a fixed deal at 5.19%
found much better deals on moneysupermarket so plan to move to
yorkshire BS who with do 4.38% fixed for 2 years (fee = £500-700)
I was wondering could my wife and I not get new credit cards each and borrow the max amount - hopefully up to £10K each - and then use that to pay off £20K on our currently variable mortgage at HSBC and then move to Yorkshire the mortgage at £110K.
We both have v good credit and could payback the £20K within 10 months
therefore does anyone know a credit card that has 0% on balance transfers and if indeed this would count as a balance transfer and would allow us to borrow this amount ??

cheers !

grumbler

See links Balance Transfers | Super BTs | Stoozing in the blue box above.

Also:
http://www.stoozing.com/0fees.htm,
http://www.stoozing.com/full.htm

It is difficult to find a good 0% deal longer than 9 months now.

regularsaver1

But if you have £20k in credit cards, this debt will then reduce the amount you can borrow on the mortgage, as they will become a commitment

Bokken_2

plzsm wrote:

We both have v good credit and could payback the £20K within 10 months

Have you considered a mortgage that allows overpayments,we have a First Active mortgage fixed for five years that allows upto £5000 overpayments per year.If you saved your 20K or stoozed it you could make overpayments in March and again in April(Financial year) and reduce the debt by 10k straight away.Its a thought.

plzsm wrote:

therefore does anyone know a credit card that has 0% on balance transfers and if indeed this would count as a balance transfer and would allow us to borrow this amount ??

It wouldn't count as a BT it would count as a cash advance which would cause you to incurr higher interest rate on your card.
If you use a SBT via Mint or Alliance&Leicester into your account you then write a standard cheque(or electronic transfer etc) to the mortgage company to make the overpayment.

Joe_Bloggs

My words may sound harsh as I am asking questions. If you can come up with 20K in 9 months then why did you not do this in the pervious 9 months ?
What is your cash ISA /savings situation ? You could put the stoozed funds after a remortgage into a total of 2x £3K before the start of April and 2x £3K after assuming you have not used your 2005 allocation. You could get more than 5% plus per annum tax free. This assumes you can get the cards. and can handle the monthly capital repayments on the cards.
The move to the YBS looks good value in the short term. You can pay up to 10% of the total outstanding, per year, either in a lump sum or via monthly overpayments. Interest is charged daily !
J_B.

plzsm

firstly thanks for the help

Bokken, what is SBT ?

Joe Bloggs,
If you can come up with 20K in 9 months then why did you not do this in the pervious 9 months ?

>got a new job that pays much much better

What is your cash ISA /savings situation ?

£20K in an egg savings account - no ISAs


still struggling to find a crdit card - most wont accept cash transfer only on credit cards

grumbler

plzsm wrote:

...what is SBT ? ... still struggling to find a crdit card - most wont accept cash transfer only on credit cards

SBT = Super BT. See my post above and follow the links at last ...

plzsm

thanks for that
i see now
seem mbna offer the best 0% SBT for 9 month altho 2% fee

Bokken_2

plzsm wrote:

thanks for that
i see now
seem mbna offer the best 0% SBT for 9 month altho 2% fee

Which ever one you choose make sure that the transfer fee is capped at £50 or you will incurr a large transfer fee.

Joe_Bloggs

@Plzsm.
Iif you are in a new job then are you under a probationary period ? This may affect your remortgage options. I would think it makes money saving sense to go for the remortgage before meddling with credit cards.
Are you paying tax on your savings ? Why don't you have mini-cash ISAs ? The interest is paid,tax free, when compared to the Egg or any other conventional savings account.
When you say you are struggling to find a credit card,what exactly are you doing ? Applying for credit too often can ruin your credit score.
J_B.

plzsm

thanks for the help
no probation so no worries there
current mortgage is £150K at 5.5%
going to move to first active at 4.59% fixed for 2 yrs
i have the capacity (now) to save £3K a month
hence the plan was to get a credit card transfer of say £10k
pay this off my mortgage and then move the mortgage to a fixed
as i cant pay the £10K once fixed without penalty
i can pay back the £10k to the credit card in 4 months
i.e. trying to get the mortgage down as much as poss before fixing it
been lazy on the isa front but looking to sort this after my mortgage
not applied for any credit card yet - just enquired
best i can find is mbna they will do a cash transfer to my bank
but they charge 2% not capped at £50 (9 month free credit)