I've Done It!! I'm Finally Mortgage-free

barnishroader

Martinslovechild wrote: »

That's correct - if you were to put the cash into a Savings Account.

However - I don't need to tell you that you'll obviously pay tax on any interest earned in a Savings Account, which is why I chose instead to drop the cash in a Mortgage Offset Account. You could also choose a Cash ISA to prevent interest from being deducted.

Don't forget that the £2700 is earning you £125 that you never had before - this is equivalent to approx £184 gross for a basic rate taxpayer. However - should you choose to increase your stakes to £27,000, you'll earn £1,250 (or £1,840 gross for a basic rate taxpayer / £2119 for higher-rate). I'm sure you'll agree that these sums of money are very respectable reasons for stoozing.

If you're worried about funding the minimum payments each month (and these can mount up, particularly if you owe tens of thousands on credit cards), you could simply keep sufficient back in an Instant Access Savings Account (e.g. Sainsbury's Bank) to cover the minimum payments for the duration of the 0% period and deposit the remainder of the Balance Transfer in your offset account / Cash ISA.

Sorry i meant to say i was going to put it into NS&I Mini Cash ISA.
Is there a difference between this and the Sainsbury's One you mentioned?

I assume you are saying for example if i had £10k, to put say £8k into savings and £2k into the Sainsburys one to cover payments.

Martinslovechild

That's correct Barry - simply work out the minimum payments required for the duration of the 0% period and if you can't afford these directly out of your salary then keep this amount aside from the amount Balance Transferred in the Sainsbury's Savings Account.

The NS&I is a good account paying a decent rate so you've chosen well here.

markjohns

have just begun stoozing - and have found all the info on this website very useful. have opened my Egg money account and so far have successfully BT'd some £7.5K. have directed this 'cash' into NS&I ISA's in both mine and wifes name and balance has gone into Sainsburys Esaver account. unfortunately have made the mistake of opening the esaver in my name (am 40% tax payer) will have to transfer to my wife to max out the savings and minimize the tax!

5monkey

I havent got a house yet but im working on it... I have started stoozing already... Great story!!!!