advice please on borrowing £10,000 on 0% credit card

aimo

i need to borrow £10,000 for an extension, have spoken to mortgage company who will lend me the money but will wind up paying back £2.07 for every £1 borrowed! I was thinking about trying to get the money on 0% credit cards instead, but just wanted to get some advice from more experienced money savers. if anyone has any tips for me they would be appreciated!! thanks!

YorkshireBoy

How much you pay back on the mortgage will depend on how long you take to pay it off.

If you go the 0% CC route, you'll probably pay 3-6% in BT fees each year.

CC repayments will start at £200-300 per month on £10K (unless you go for an MBNA run card with it's £25 minimum payment).

Perhaps a better route would be to go with an M&S LOB card and the 'Egg Money Card Trick'. The 'loan' would then be at 4.9% for the life of the balance, but again the minimum payments (at 3%) would start at £300 per month.

You may not get £10K on the one card, meaning you have considerably more 'admin' to do.

To be honest, because it's for home improvements which should increase the value of your property, I'd just put it on the mortgage and overpay whatever I could each month.