offset mortgage / credit card

willywonker

Hello,

I'm a bit confused, can someone point me in the right direction.

Currently I use my credit card for all my purchases and pay it off each month. I spend around £700 per month although this goes up when I buy car tax, insurance, holidays and what have you. (It's a Tesco card so we get points which to be honest we've got so many that we don't know what to do with them.)

I also have an offset mortgage with an interest rate of 5.25 %

So am I right in thinking that I should just get the longest 0% deal and then use the card as I am now but only pay the minimum off each month.

So what do I do at the end of the deal? Pay the card off or transfer balance to another card with 0% interest I guess if the 0% interest is for a year as long as the transfer costs are below 5.25% I will still be saving money?

What sort of credit limit am I likely to get (I take home appox £40000)

CannyJock

Try the guide on the stoozing site: http://www.stoozing.com/g_stooz.htm



Basically yes on the 0% purchase card. If you've already got a Tesco card then you'd be looking for another new purchase card? Or do you have a 0% purchase offer on your existing card?

0% balance transfer is the best way to clear it if you can get fees less than 5.25% like you say.

How are you going to route the money into your offset account?

Credit limit you'll get nobody knows, the old expectations of 50% of salary building up to 100% are pretty much out the window now. But every little helps as Tesco would say

willywonker

Basically yes on the 0% purchase card. If you've already got a Tesco card then you'd be looking for another new purchase card? Or do you have a 0% purchase offer on your existing card?

New card required.

0% balance transfer is the best way to clear it if you can get fees less than 5.25% like you say.

As I currently pay it off each month there is not a balance to transfer.

How are you going to route the money into your offset account?

I was thinking of just keep spending as I am and paying the minimum off each month. The money that I'm spending on the card stays in my bank account of course. Thinking about it, is it possible to pay your mortgage on a credit card, that would be a much easier way to build up a large pot?

CannyJock

willywonker wrote: »

I was thinking of just keep spending as I am and paying the minimum off each month. The money that I'm spending on the card stays in my bank account of course. Thinking about it, is it possible to pay your mortgage on a credit card, that would be a much easier way to build up a large pot?

Ah, slow-stoozing on 0% purchase cards, gotcha. List of current 0% purchase cards on the stoozing site on http://www.stoozing.com/purchases.php

Making mortgage payments on credit cards has come up a few times, from memory you need to phone and speak nicely to the mortgage people and tell them it's just a one off .. honest ... others have reported being able to make council tax repayments on 0% purchase cards

http://www.stoozing.com/forum/YaBB.pl?num=1244812142

willywonker

Thanks for your help.

Anon

willywonker wrote: »

(It's a Tesco card so we get points which to be honest we've got so many that we don't know what to do with them.)

Don't know what to do with them ... ? Either double up against your shopping (£5 = £10 off shopping) or even better worth x4 against days out (excellent for the summer to the zoo, theme parks etc), ferry, holidays, all sorts. If they are past their use by date, call up their CS and they will re-issue against your next statement.

Anon