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Help with a Calculation Please

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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

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
  • bennyk
    bennyk Posts: 2 Newbie
    Thanks Yorkshire Boy.

    Guess it does not look all that attractive now !!!

    Thanks for your time though
    b:D
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