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Help with a Calculation Please
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bennyk
Posts: 2 Newbie
hello All,
Please could someone help me with a calculation to help me decide if this is worth going for or not.
Have a Flexible current account mortgage for circa 150k.@ 6.5%
Have a halifax credit card with credit limit of 10k and they have offered me a 0% deal for 5 months with a 3% handling fee.
So, if I get 7k on the card, I will pay a £210 fee.
Will then deposit the cash in my savings account which will offset my mortage by 7k for 5 months.
How do I calculate the saving in interest on my mortage Vs the 210 handling charge to see if it is a good deal?
Thanks
Please could someone help me with a calculation to help me decide if this is worth going for or not.
Have a Flexible current account mortgage for circa 150k.@ 6.5%
Have a halifax credit card with credit limit of 10k and they have offered me a 0% deal for 5 months with a 3% handling fee.
So, if I get 7k on the card, I will pay a £210 fee.
Will then deposit the cash in my savings account which will offset my mortage by 7k for 5 months.
How do I calculate the saving in interest on my mortage Vs the 210 handling charge to see if it is a good deal?
Thanks
0
Comments
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Use the www.whatsthecost.com/stoozing.aspx calculator.
Enter your gross savings rate as...
6.5% x 100/80 = 8.125% (for a basic rate tax payer) £25 loss
6.5% x 100/60 = 10.83% (for a higher rate tax payer) £38 gain
In practice, your loss would more (and your gain would be less) due to the delay in getting the cash in there - and getting it back out again to settle the debt.0 -
Thanks Yorkshire Boy.
Guess it does not look all that attractive now !!!
Thanks for your time though
b:D0
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