Mortgage stoozing?

Arbie

I've just been offered a 12 month 0% BT deal from one of my existing credit cards, with a 3% fee. My question is should I take the £15000 cash transfer to my bank account and overpay my mortgage immediately by that amount and leave it for a year, before retrieving the money and settling the credit card debt?

My initial figures indicate that this wouldn't be hugely beneficial, but I'm not convinced I've got it right!

My mortgage is at 2.5% and has £185 000 outstanding; I would maintain my monthly payments of £850 (obviously, this would effectively be overpaying in itself and some capital would be reduced).

Thanks

Arbie

somethingcorporate

Since the 3% fee is higher than your 2.5% mortgage rate it would not be a wise thing to do.

What you may want to consider is stoozing from your low rate mortgage into savings since you can get better than 2.5% from a number of places if you have this option.

Arbie

Thanks - I thought as much and should have gone with the obvious figures! Will see what I can do with my previous overpayments..

Cheers

Arbie

Jevvers

Cripes, I never thought of taking money from the 0.99% mortgage and sticking it in a savings acc. We have a £17k chunk in our mortgage that we could do that with. Can't believe I didn't realise earlier! Thanks