Overpay mortgage/credit card

rharwin

I am hoping somebody may be in a position to advise.

I currently have a mortgage of £180000 and am on Nationwide's SVR of 2.5% and my only other debt is £3200 on virgin credit card which is 0% up to and including May's statement.

Would it be best for me to pay off the credit card (I could pay off around £700) a month and maybe any outstanding balance transferred to another 0% card - however, would applying for another card affect my credit rating?

Or should I possibly transfer the whole balance to a 0% card and concentrate on overpaying my mortgage - we are actually looking at moving in around 2 years for better schooling so would be looking at increasing equity as much as is possible - we currently have only 15% equity.

Many thanks for your time.

getmore4less

Mortgage rate 2.5%
Balance transfer fee around 3%(up front).

Get rid of the CC debt it costs more even though it is at 0%

A 0% spend card might help with cash flow if you can't clear the CC before the rate goes up and will be cheaper(no fees).

Rufus_348

Even paying off £700 for three months you'd still be left with £1100 that you'd have to pay Virgin's high rate of interest on - so 0% sounds like your best bet.

Nationwide has a 0% balance transfer for 13 months so maybe it'd be worth asking them?

getmore4less

Get a 0% spends card and put as much of your normal spend as possible.

It should leave a small amount or nothing to clear a month later with the £700pm then you can pay of th spends card whne it gets closes to the end.

No point in paying out another 3% fee when you can clear the amount in just over a month or 2 more.

rhysvw

Dont agree with switching to 0% each time after all the idea is to repay the debt also post 2 makes a good point about BT fee's pay it for 4 months the debt is gone you have to pay it eventually also work it 3% of 3100 is 96 so it certainly apperas the credit card bt would be better on interest but whats the end goal its all very well for people to bang on hese forums saying switch this swap that the rezality being this you elimnate the debt its a feel good factor less woryy also you'll then have the extra income to hammer the mortgage think of the long term plan.

Hope this helps

rharwin

Many thanks for your last reply - very sound advice which I shall take on board.

JA1000

Save as much now and pay off as much as you can before 0% deal is up £2800 plus a small amount of interest. You will be left to transfer £1100 so £33 charge then either get rid of it or again save until it is due.