Advice please on using credit cards to pay interest on mortgage

Clariman

homersimpson wrote:

The https://www.stoozing.com page and Martin under article ?REVENGE! Make Free Cash from Credit Cards? website says take the money from credit card, pay into high interest savings account with easy access. .... But Martin's article ?REVENGE! Make Free Cash from Credit Cards? also says ?Anyone with a flexible mortgage, where money can be deposited and then taken out at will, should simply pay all the cash into that. The interest reduction on your mortgage will outweigh even the best cash ISA returns?.

I'd agree with Martin's comments. If you have an offset mortgage then stoozing against that is more profitable than stoozing into a savings account. However, my understanding is that flexible mortgages tend to have a slightly higher interest rate in the first place to pay for the flexibility. There is also a section on the stoozing website specifically about stoozing against an offset mortgage:

http://www.stoozing.com/offset.htm

Clariman

smartsaver

I agree with Clariman. Flexible mortgages do attract a higher rate of interest and only work if you have a stooze pot that almost equals your mortgage. Someone on the Mortgage board has done the exact figures.

Also make sure you can change the mortgage without a penalty or are not tied into it for too long as the 0% deals might end or your source of them dry up before you have paid off your mortgage.

If for whatever reason the stoozing ends, for most it would be cheaper to have a non flexible mortgage.

dirtyred619

smartsaver wrote:

The building society manager worked out we were 'stoozers' and was impressed and amazed by our stoozing pot which was 81k at the time and will be again soon thanks to IF and EGG anniversary .

How many cards are you running to get that sought of a stoozing pot? Impressive!

smartsaver

I have EGG 1500, Barclaycard 1000, Tesco 2000, HSBC 2000, MBNA 3000, Abbey 4000, LloydsTSB 15000 and soon IF 3900 for stoozing and Nationwide for everyday use

Mr Smartsaver has EGG 15000, First direct 6800 MBNA 18000, LloydsTSB 15000 and soon IF 11000 for stoozing :d

It's abit like running a small business...

dirtyred619

smartsaver wrote:

It's abit like running a small business...

Looks like it too!

I take it all the above cards will be swapped to another 0% card when their offers are approaching an end, a bit of a knightmare to keep track of I'm sure but it must be worth it!