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Borrow on a 0 % card to pay off mortgage capital?
mel4less
Posts: 3 Newbie
Would be interested to know if anyone on a tracker at 0.5% has considered transferring a few £KK's from a 0% credit card to reduce the capital?
Lower interest over the length of the mortgage v the transfer fee now plus the benefit of reducing the capital whilst interest rates are low.
Would welcome thoughts and calculations !
Lower interest over the length of the mortgage v the transfer fee now plus the benefit of reducing the capital whilst interest rates are low.
Would welcome thoughts and calculations !
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Comments
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Much too scary a prospect, I'm not completely risk averse but - no way, wouldn't you have to have a card that you could do a balance transfer to your current account or an egg money card?
Imagine if you were one day late making the payment and suddenly got a big bill for interest!"You've been reading SOS when it's just your clock reading 5:05 "0 -
The benefits of this would be greater when the interest rates are high.
If you are only paying 0.5% interest I wouldn't do it. What happens if you can't afford the credit card repayment in any month?
Is it really 0% or is there a 2% transfer fee in the small print?
Even if it really is 0%, how long does it last?
Transferring £6,000 over 1 year would give you monthly CC repayments of £500. Total saving = £6,000 @ 0.5% = £30 a year.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
It is not on.
...............................I have put my clock back....... Kcolc ym0 -
Don't forget to factor in the balance transfer fee.
3% fee up front on 12 month rate equates to an APR of 5.9%ish.
It's a crazy idea do not do it!!0
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