Can you use Credit cards for 'free cash' to help reduce a mortgage

steedman

I noted that the Halifax Online Exclusive One card has a 12 month 0% period for all spending, is it possible to use offers like this to help pay off a mortgage and then tart on the balance transfers? how would you go about doing this?

DARYALS

Yes! But you may have to pay an arrangement fee for a cash transfer to your bank account. this is usually 2% or it's a fixed fee up to a certain limit. I took a 4K cash transfer on my card and put this down as a deposit on my house, this cost me about £200 to borrow the money over 4 months but if I'd tarted it would have cost less. The debt is now paid off and I'm laughing because the bank dont get the interest on 4K which would have been on my mortgage!! :beer:

Clariman

steedman wrote: »

I noted that the Halifax Online Exclusive One card has a 12 month 0% period for all spending, is it possible to use offers like this to help pay off a mortgage and then tart on the balance transfers? how would you go about doing this?

Yes you can. This is a variation on stoozing. You might find this Stoozing Offsetting Guide a useful starting point.

Clariman