Balance Transfer Card for Offset Mortgage

ydraiggoch

Hi,

Firstly apologies for what might seem like an dumb question. But having read a number of articles on this, I just wanted to make sure I understood it properly and run it by you guys in English.

This is what I was planning to do;

I have an Offset Mortgage, soon to be charging me 4.5% interest. I was thinking to go for a 'Balance Transfer' type credit card at 0% for say 24 months. I would max this out by transferring as much as I could from the credit card into the Mortgage Savings Account.
If I transferred 10k from the card, I would pay £190 based on a 1.9% fee and then nothing for the remaining 2 years (as long as I cleared the balance at the end of the term). Whereas if I maintained a 10k debt within the mortgage, I would pay £900 over 2 years in interest.

Is this right?

I just have doubts over whether I can take money from one of these cards and put it into my Offset Mortgage account.

Any advice is duly appreciated.

[Deleted User]

You would need a card with a money transfer option. You can't BT a mortgage.

ydraiggoch

Thanks Zx81,

So essentially am I correct except for the terminology ie rather than a Balance Transfer Card I need a Cash Transfer Card?

[Deleted User]

Yep. But bear in mind your limit may be nothing like 10k.

JimmyTheWig

Is there any reason why you can't remortgage, or get a new deal with your current provider, onto a better rate?

MallyGirl

ydraiggoch wrote: »

If I transferred 10k from the card, I would pay £190 based on a 1.9% fee and then nothing for the remaining 2 years (as long as I cleared the balance at the end of the term).

you would still need to make minimum payments to the money transfer card each month - usually 1% but some are 2%, so you would be knocking £100 or £200 pcm off the outstanding balance. The fee would be added to your balance so if you could transfer £10k this would make your balance £10190.
You are usually limited to transferring a max of 90% of the limit.