Motgage rates going up

charsun

thanks for all your reply's i really appreciate it, because i only owe a small amount, as most of you have said, ime probably better off staying on the SVR. but if anybody feels any different, let me know

Landofwood

HappyMJ wrote: »

Doesn't everyone have a super balance transfer card...or is that just me? As above a Barclay's card can be used or in my case a Virgin card. I can easily get money into my current account via the Virgin card.

Yes but there's a 4% fee.

PixelPound

Landofwood wrote: »

Yes but there's a 4% fee.

No there isn't, I think you missed the point.

Say you already have a barclaycard with a zero balance. You apply for a Tesco CC that has a no-fee 0% BT offer, and they give you a limit of say £7500. You do a BT from Barclays to Tesco of £7400. Your next statement from tesco will show the £7400 with no fee and not incurring interest. Your Barclaycard will have a balance of -£7400 (minus as you've over paid). Barclaycard will transfer the overpayment to your bank account for free. So if you do that and stick it in Santander 123 account you'll have the rest of your promotion with a nil balance on your barclaycard, zero interest BT on Tesco and money in your bank account earning 3% gross.

getmore4less

Stoozing like this with 3% savings fixed rate 1.79%mortgage OP can save around £10pm per £10000.

Landofwood

nic_c wrote: »

No there isn't, I think you missed the point.

Say you already have a barclaycard with a zero balance. You apply for a Tesco CC that has a no-fee 0% BT offer, and they give you a limit of say £7500. You do a BT from Barclays to Tesco of £7400. Your next statement from tesco will show the £7400 with no fee and not incurring interest. Your Barclaycard will have a balance of -£7400 (minus as you've over paid). Barclaycard will transfer the overpayment to your bank account for free. So if you do that and stick it in Santander 123 account you'll have the rest of your promotion with a nil balance on your barclaycard, zero interest BT on Tesco and money in your bank account earning 3% gross.

Well that's not what he said is it.

PixelPound

Landofwood wrote: »

Well that's not what he said is it.

Well maybe HappyMJ didn't realised that normally BT to an bank account is treated separately, or did but just wasn't clear enough

Landofwood

nic_c wrote: »

Well maybe HappyMJ didn't realised that normally BT to an bank account is treated separately, or did but just wasn't clear enough

I'm still struggling to find a fee-free balance transfer card.

PixelPound

Landofwood wrote: »

I'm still struggling to find a fee-free balance transfer card.

Do you mean a card that offers free BT direct to bank account? I don't think they do, since this normally attracts a higher fee than CC BT.

charsun

charsun wrote: »

thanks for all your reply's i really appreciate it, because i only owe a small amount, as most of you have said, ime probably better off staying on the SVR. but if anybody feels any different, let me know

i looked at a 24.500 loan with sainsbury over 2 years, monthly repayment would be £1082.01. total repayment would be £25.968.24 i would save £90 a month, but the term of the loan would be 2 months longer.is it really goner make a big enough difference if i take out a loan,change to a fix or tracker the most i think ime goner save is £400 is this right

HappyMJ

charsun wrote: »

i looked at a 24.500 loan with sainsbury over 2 years, monthly repayment would be £1082.01. total repayment would be £25.968.24 i would save £90 a month, but the term of the loan would be 2 months longer.is it really goner make a big enough difference if i take out a loan,change to a fix or tracker the most i think ime goner save is £400 is this right

In my opinion you aren't going to save much even if you switched to a tracker mortgage. Do you have redemption fees on your mortgage? Would you qualify for a 2 year tracker mortgage? You need enough income to support the amount you are going to repay and have money left over. It might mean you need a salary in excess of £30,000 to get the 2 years. You've got to borrow a minimum of £25,000 and it also prevents you from overpaying which isn't what you wanted.

The interest rate is higher with that amount. Try a maximum of £15,000 and set the term to 18 months instead. If you don't already have a super balance transfer card (which I may have wrongly assumed) then just get the interest free on purchases credit cards and put all your spending on that and pay the mortgage off using what you would have spent on the groceries and bills. It'll soon be clear. When interest rates do rise they'll only increase by small amounts to see what happens. A 0.25% interest rate increase would only cost you an extra £2.50 a month in 12 months time assuming you've got your balance down to £12,000 outstanding by that time.