Pay Off Mortgage With 0% Credit Card?

rotormotor

Hi,

I have a 'small' £3,000.00 mortgage & I want to pay it off in the next year or so. I thought it might be a good idea to use a 0% credit card & then pay into the cc account instead of the mortgage hence saving some interest over 12 months.

Sadly there does not seem to be a cc which will allow this as the transaction is not a straight forward balance transfer or purchase. It would involve a cash advance instead.

Any other thoughts?

Many thanks.

Regards,
rotormotor.

aliasojo

This is what SBT cards such as Egg or MBNA are for. You transfer to your bank account first (as if the transfer is going to pay off your overdraft) and then send the funds to your mortgage company as you would a normal payment.

See here for more info on SBT: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1085355871,12390,

Bear in mind your monthly cc payments may be larger than your existing mortgage payments depending on which card you get and how high or otherwise your mortgage payments are at present. Also, if you haven't cleared the balance by the end of the introductory period, you would have to find a new 0% or low interest card to transfer to.

Some cards charge a fee for a BT, some don't. Some fees are capped, some are not.

Also take into account any discharge fee you may have to pay your mortgage company if you pay your mortgage off early.

Quite a number of variables involved but if you get the right card and the right T&C's then it may well be worthwhile.

Hopefully you will get more replies soon, there are a good number of people here who can advise further.

Welcome to the site by the way, hope you find it a useful source of info.

rotormotor

Thank you. That is a big help. I will have a look at the card alternatives. Is Mint the same as MBNA? Are there any others to consider?

Many thanks again.
Regards,
rotormotor

rotormotor

Looks like Mint could be the one I use. I already have a Morgan Stanley card so I'm trying to see if they do a 0% cheque offer. It might do away with the application side of things.

Thanks.
rotormotor.

rotormotor

Mint card it is. I have applied online. What a result in no time at all. I'll have to work out what I will save in interest.

Many thanks.

Regards,
rotormotor.

PS Now posting an insurance question.

king_3

MBNS card is a good option. But if you do not have it and do not want the hussle getting one, might try to sent it to your credit card, which will make it in credit. Then ask your credit card company to send credit to your cc. I was told ths is fairly uncommon, but they did it for me anyway. I told them I got credit card detail mixed up. HSBC Visa did this for me. Believe reputable high street bank wold do the same for you.