is it worth my while to stooze

flynnf

hello i have been i regular viewer on this site but this is my first post i have recently become very money wise mainly thanks to this site ,opening new accounts and switching existing ones to earn more money, my question is i have a mortgage with a good rate of 1%(luck i know) i can borrow back on this mortgage at the same rate, is it worth my while to do this and open a santander acount and recieve the 3% interest on offer.

Cornucopia

You're not going to get rich doing this - the maximum deposit is £20k, which before tax equates to about £33pm at your SNR (Stooze Net Rate).

Only you can decide whether the reward is worth the effort.

flynnf

thanks, ill look into in ,my mortgage happens to be with santander as well do you thing they would catch on and do any thing about it i could also get the mortgage cash back as well which would be another few pounds

Cornucopia

I doubt that they'd notice. You could check the mortgage ts &cs, though.

sicker

Is it worth the hassel?
Do you not alraedy get 1% cash back on the 123 current account.

Cashback - on household bills paid by Direct Debits:

• 1% cashback on water, council tax bills and Santander mortgage payments (up to maximum monthly mortgage payments of £1,000)

flynnf

I have not got my mortgage coming out of a santander account at the minute ,if myself and my wife both opened a 123 and I borrowed back 40000 we would have close to 600 pound a year in interest, just wondering is it as simple as borrow for the low rate and save at the higher rate.

YorkshireBoy

flynnf wrote: »

I have not got my mortgage coming out of a santander account at the minute ,if myself and my wife both opened a 123 and I borrowed back 40000 we would have close to 600 pound a year in interest, just wondering is it as simple as borrow for the low rate and save at the higher rate.

You'll make £547.20 per year in pure interest terms. That's £40,000 x 2.96% x 0.8 on the savings less £400 on the cash drawn down...assuming you're both BR tax payers. There's obviously a further tax liability if one or both of you are higher rate tax payers.

Plus a bit on cashback.

Less a bit of interest on monthly savings you could have made if you weren't making increased mortgage payments (if they adjust immediately rather than once per year?).

flynnf

Thanks for the info. What do you mean 400 pounds on the cash drawdown.

YorkshireBoy

flynnf wrote: »

What do you mean 400 pounds on the cash drawdown.

The cost of borrowing back from the mortgage is 1%.

1% of your proposed £40K is £400.

vns

Personally, I would do it in a heartbeat

So long as:
1) you can manage it properly
2) Your mortgage T&C's don't have an early repayment clause
3) Ear mark that money as "not yours" so that you're not tempted to go and spend it...

vns

Also, Santander 123 accounts offer 1% Cashback on Santander Direct Debit mortgage payments. (on the first £1000pm)

That's an extra £10pm there.