Mortgage offset or 0% Credit Card

maisydaisy1

Not sure what is best - to pay off a balance outstanding on a 0%card - as just about to run out - could use money available in mortgage offset, or take out another 0% card and transfer the balance - leaving the money in the mortgage offset.

This is so confusing - how do I work out which is better for more, I have both options open to me???

Tixy

Have you been approved/credit checked for a new 0% card?
What fee would you have to pay for the new transfer?

Compare that fee to the amount of interest you will save by leaving the money in the offset account (depending on your mortgage APR).

maisydaisy1

Hi,

Thanks - yep I've worked out that say it was 10K - they've already approved it - can transfer the balance again for 0% at 2.9 %.

So I've worked what it costs,

Where I get stuck is 10K against an offset mortgage - reduces balance by 10K - how do I work out what I will save? derrrrrr:mad:

TFD_2

Depends on your mortgage interest rate also.

CannyJock

And how long the 0% offer is to work out how the 2.9% fee works out as an APR. You'll be paying the minimum on the card while it's at 0% presumably?