Credit card cheque to pay off mortgage 13 July 2006 at 8:11AM in Mortgage-free wannabe 6 replies 1.5K views

holiday-spain.biz

Hope I am in the right place for this question.

I have an unused credit card with Abbey, they sent me a bundle of cheques with interest free credit until April 07 (a fee of max £75) is payable.

I have a flexible mortgage with Alliance at a rate of 5.4, if I paid £10,000 of the Abbey free credit into my mortgage how much would I save in interest between now and April.

My thoughts were to do this, adjust the monthly paymanet I make to the mortgage to cover the minimum payment to Abbey, then in April take the cash from my mortgage to pay the crediot card back.

Any suggestions?

Thanks

Angus

dang

I work it out at about £250.

I would do it - in fact i do every time i do a stooze,its just that my cash goes into a savings account,and not an offset.

Xbigman

Aren't checks used this way treated as cash withdrawals? Its worth asking this question on the credit card board.
Regards



X

kenshaz

The cheques are a waste of time,they will charge as if you had drawn the cash out of an ATM machine,not suitable for stoozing

PoorDave

Xbigman wrote:

Aren't checks used this way treated as cash withdrawals? Its worth asking this question on the credit card board.
Regards



X

Not always. Look at card terms & conditions

YorkshireBoy

kenshaz wrote:

The cheques are a waste of time,they will charge as if you had drawn the cash out of an ATM machine,not suitable for stoozing

MBNA (who run the Abbey card) are having a big push at the moment on 0% offers.

OP has already stated the cheques are 0% for the best part of 9 months.

During this period, the monthly minimum payments are £5.

The equivalent interest rate, in a flexible mortgage, is 6.75% for a basic rate tax-payer, and 9% for a higher rate tax-payer.

...and you say "not suitable for stoozing".

skaff

Would another option be the occasional low rate CCs that offer a flat rate for the life of the balance. I have an M&S card with 8K that is 3.9% for the life of the balance. If i hadn't used it to consolidate other cards i could have taken 8K of my mortgage instead.........couldn't i?