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Credit card/ Remortgage

Options
***Also posted on mortgage board**

All suggestions, help and advice appreciated.

In December my current fixed rate deal on my mortgage comes to an end (currently fixed at 8.99%, yes I know it’s high it was a 10 year fixed rate deal that was good at the time).
Come December I will have about £13k outstanding over a 5 year period. I currently pay just over £250 per month, but I can now afford to pay upto £400 per month.

Now my problem- Should I

go for the safe option and remortgage reducing the term to 3 years.

Use a super transfer balance and stick the £13k on credit cards and shuffle around on 0% balance transfers, which is a little riskier.

Go for another option?

All suggestions, help and advice appreciated.

:confused:

Comments

  • Galstonian
    Galstonian Posts: 1,292 Forumite
    I do not think you will be able to simply stick it on credit cards but even if you manage it I don't think you should. If you have trouble with balance transfers you need to have a backup, perhaps a very flexible mortgage or even a personal loan, to have no alternative to CC would be foolish. I am not saying you can't use CC offers to reduce or even eliminate interest payments, just don't rely on it.
  • alirob12
    alirob12 Posts: 809 Forumite
    Part of the Furniture Combo Breaker
    hi i'm havin a simmilar problem at the moment but wanna pay off my loan of 14.9% interest by sticking it on the c card and then either shuffling between 0%interest cards or by putting it on for example texaco - 3,9% for balance life, I think i ll decide to do that but i only have about 4or 5000 to pay off,
  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Two ideas for you Stevie, since I think it is unlikely you will get a mortgage for such a small amount for such a short term.....

    1. A cahoot flexible unsecured loan that you can then use 0% cards to keep the interest down and pay off as and when you can.

    2. A first direct or woolwich offset mortgage for £50,000 but with most of it offset with savings. You then have access to a cheap form of borrowing as well as a way of improving the return on any other savings. You can also use the 0% offers into the offset arrangement.

    In time hopefully you will have a £50,000 mortgage offset by £50,000 of savings (both reducing due to repayments) but no interest bill. At least the bank will be looking after your deeds for you though!
    Smile :), it makes people wonder what you have been up to.
  • In December my current fixed rate deal on my mortgage comes to an end (currently fixed at 8.99%, yes I know it’s high it was a 10 year fixed rate deal that was good at the time).
    Come December I will have about £13k outstanding over a 5 year period. I currently pay just over £250 per month, but I can now afford to pay upto £400 per month. Now my problem- Should I

    go for the safe option and remortgage reducing the term to 3 years.

    Use a super transfer balance and stick the £13k on credit cards and shuffle around on 0% balance transfers, which is a little riskier.

    Go for another option?
    :confused:


    Switch to a One Account flexible mortgage.
    'Stooze' on Credit Cards, putting the capital into the One Account.
    Keep your payments as they are (i.e. £250 per month)

    That's my opinion and I'm sticking to it ;)
    It has taken about 4,500,000,000 (4.5 billion) years for the Earth to form as it is now .........
    and it'll only take about another 100 years for mankind to really **** it up!!!!
  • Galstonian
    Galstonian Posts: 1,292 Forumite
    Switch to a One Account flexible mortgage.
    'Stooze' on Credit Cards, putting the capital into the One Account.
    Keep your payments as they are (i.e. £250 per month)

    That's my opinion and I'm sticking to it ;)

    Which seems a bit foolish give that the interest rate is not the best available. Personally I'd look to Egg as they have good rates and very low fees.
  • zcaprd7
    zcaprd7 Posts: 1,079 Forumite
    Why not apply for a few low life of balance cards (Texaco and Amex) and see what your get offered?

    Mule them to Egg for cash and then do a remortgage based on what you need?
  • Galstonian wrote:
    Which seems a bit foolish give that the interest rate is not the best available.

    If they've got a better Mortgage Rate than One Account then I totally agree, go ahead, but the gist of my point was to use a Flexible Mortgage Account ;)
    It has taken about 4,500,000,000 (4.5 billion) years for the Earth to form as it is now .........
    and it'll only take about another 100 years for mankind to really **** it up!!!!
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