Buying on 0% card to pay off mortgage

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Is this a good idea? I'm not talking about a super balance transfer (which would incur a 3% or so fee) but just purchasing on the CC and using the extra money in your bank account to overpay the mortgage?

So effectively borrowing at 0% and paying off around 5% interest rate.

I guess the problem comes when the offer ends and you have to transfer the balance, which is no longer free, and usually 3% again???

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  • thriftymomma
    thriftymomma Posts: 1,107 Forumite
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    I'm not sure how long you can get at 0% on purchases but it won't even be a year will it? So you are talking about having all your monthly expenses paid onto this card, and instead of paying off the balance each month, using that money to pay extar on your mortgage? Sounds a bit of a faff to me.
    Got Halifax Classic to reduce my interest rate by 5% woohoo - 10/06/08 Thanks MSE!
    Another 3% shaved off 10/12/08
    ANOTHER 4 % June 09:beer:
  • nick1977
    nick1977 Posts: 160 Forumite
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    Would be a good idea if you have an offset mortgage, so you could pay off the full balance at the end of the interest free period.
    Otherwise like thriftymomma says, it's probably a lot of effort for very little gain

    HTH
    Nick
    £5850 in the rainy day fund - target £9000
    £575 in OH 40th BDay Account - target £5000 by April 2013 :eek:
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