worth using 0% cash towards mortgage?

brettcta

I've just got a new card for balance transferring (0% for 24 months) and the issuer (MBNA) have given me quite a reasonable limit (reasonable compared to the Natwest student card i'm closing with a £500 limit), leaving me with £2000 left on the card.

I'm currently making token overpayments to my mortgage of £30/month - we've got a ' smaller' mortgage (95% LTV but house was only 124,000) and whilst the rates are low, i want to pay off what i can.

The card i have offers 0% on cash transfers aswell (2% fee) for 24 months - in your opinions, is it worth finding out how much i can over pay by this year (with current overpayments deducted) and take the cash off the card before the end of the year? my mortgage rate is 3.64%, so the overpayment would be 1.64% 'cheaper'.

I could increase the overpayments per month to the mortgage but i wonder if it'd be more prudent to use the credit card as i then have the flexibility of making more or lesser payments to the CC each month.

Any ideas what'd be best?

Thanks

grumbler

[STRIKE][/STRIKE]

brettcta wrote: »

I've just got a new card for balance transferring (0% for 24 months) and the issuer (MBNA) have given me quite a reasonable limit (reasonable compared to the Natwest student card i'm closing with a £500 limit), leaving me with £2000 left on the card.

£2000 balance or available credit?

I'm currently making token overpayments to my mortgage of £30/month - we've got a ' smaller' mortgage (95% LTV but house was only 124,000) and whilst the rates are low, i want to pay off what i can.

The card i have offers 0% on cash transfers aswell (2% fee) for 24 months - in your opinions, is it worth finding out how much i can over pay by this year (with current overpayments deducted) and take the cash off the card before the end of the year? my mortgage rate is 3.64%, so the overpayment would be 1.64% 'cheaper'.

I think it's a matter of simple arithmetic, not opinions.

[STRIKE]£2K overpaid now saves you £328 over 2 years assuming that you can pay the CC balance off at the end of 2 years.[/STRIKE]

EDIT: my 'simple' arithmetic was wrong
Thanks to Typhoon2000 for correcting me.

stator

I wouldn't even consider it if you don't have significant cash savings.

brettcta

grumbler wrote: »

£2000 balance or available credit?

I think it's a matter of simple arithmetic, not opinions.

£2K overpaid now saves you £328 over 2 years assuming that you can pay the CC balance off at the end of 2 years.

£2000 available credit - apologies for not making it clearer.

Typhoon2000

Looks like you would save £104 in mortgage interest over 2 yrs after the transfer fee. Would you be able to save the £2000 over the 2 years to pay it back interest free? If you can then the savings are reduced to around £60 compared with paying an extra £84 a month (£2000 over 2 yrs)into to your mortgage.