Not Quite Stoozing But....

Beancounter

Will this work? We move house in May so I thought I could apply for 1 of the 0% cards soon. Then pay a cheque for £4000 from my existing card into my current account.A few days before that, BT the money from my new card into my existing card account minimising the interest charges payable.

I can then use the £4000 to lower my new mortgage and then pay off the £4000 over the next 9 months. This will save me around £25 per month for the 9 months if my calculations are correct?

Mark200

Beancounter, why not just get a new card (egg was a good starting point for me) and SBT straight into your current account then into your offset savings? Make sure you do the minimum payments each month and then at the end of the 0% period pay back all the money from the savings.

Galstonian

It sounds like stoozing to me.

The theory is reasonably sound but I'd suggest you have more to do during moving home than to worry about these things.

You'd be better off paying minimum payments and earning interest on the additional money you planned paying over the 9 months, how much you save depends on the mortgage rate and what you earn on savings.

Beancounter

I had an Egg card before and was overwhelmed by the generosity of the credit limit(£1000)!!

The mortgage I think we will go with is a 5 year fix from the Alliance and Leicester at 5.19%. Main reason for this is the cashback (£350 as an existing customer) and also a valuation refund. Also allows 10% overpayment per year so this would mean I could pay off £3600 in year 1 as well as using £4K of my savings to reduce the initial amount borrowed which I should have mentioned is earmarked for our legal fees etc.