Secured to Unsecured. Is this madness?

Mysteek

Around 9/10 years ago I committed an MSE cardinal sin by transferring unsecured debt to secured debt (by remortgaging and paying off all credit cards, loans etc.). This was before I was MSE and was desperate and ignorant then and didn’t know what I know now. I would definitely not go down this route if I was in this situation now. But that was then and I can’t reverse it. Or can I?
This thought popped into my head the other day, what if I used 0% credit cards (for money transfers and/or purchases), together with savings to pay off the mortgage, making sure that the transfer fees are either 0% or very low so as not to incur lots of fees. We would be talking of an amount of around £35k.
The money freed up from having no mortgage would go to pay off the credit cards, or do 0% balance transfers if not paid off by then.
Owning a house outright and the stability/security that brings is important at my time of life, particularly with retirement lurking around the corner. The credit cards would be paid off long before then.
Anyway, just looking to see what other people’s opinions are on this, whether it is completely logical and doable or completely irresponsible and stupid. Oh yes and can anyone see any pitfalls that this may encounter.
As always, thank you

ReadingTim

Secured debt is only a bad thing if you're likely to default on the repayments, which it doesn't sound like you are. Otherwise it's a cheap way of borrowing for the long term, with rates which are considerably lower than you'd get with personal loans, credit cards etc. If you've also got savings, suggest you use a significant chunk of them to make mortgage overpayments, then live as frugally as you can to try and hammer the mortgage before you retire.

Whilst everyone likes to save money, you have to consider the cost in terms of time and effort, complexity, likelihood to go wrong/chance of success, impact on one's credit rating and overall money saved in your assessment of your "cunning plan" - to me it sounds pretty risky to save a few hundred quid in interest, and could well cost more if you're refused a balance transfer or two in this complicated juggling act.

Personally, I'd keep things as they are, and use my time and mental energy on max-ing the overpayments within that set-up

Muttipops

I agree with the above.
If the poop hit the fan and you were made redundant or some other life changing circumstance came along, who knows what might happen, then where would that leave you if you could not pay off the cards before the 0% deal ended? I see you suggest getting another 0% deal, but you can't guarantee that would happen.


I can see where you are coming from and if I was a high risk person in life, i would be tempted too, but I am a nil risk person, so sure and steady as she goes and keep paying that mortgage.


How long does your mortgage have to go and can you make extra payments to bring that time down?

Mysteek

Hi ReadingTim and Muttipops, many thanks for takint the time to give me your thoughts on this.
First of all, its not really about saving money, more of wanting to feel secure, if something were to happen we would at least have a home, that's my way of thinking anyway.


We have just under 4 years to go and I have already made the maximum 10% OP this year. After having a mortgage for 37 years (not this one lol) and getting so close to the end, I am just getting impatient for it to be finished and we can finally give a sigh of relief and feel that we have achieved something.

enthusiasticsaver

I do not think I would want to stick £35k on credit cards as first of all very few would give you large balances and it would be a nightmare keeping on top of the balance transfer fees and when the 0% deals run out and then it is a very expensive way of paying a mortgage if you find that you are having to pay credit card rates if you were unable to find more 0% deals as they run out. It also seems like a total waste of time and effort. Concentrate on making overpayments by making savings in your budget elsewhere.

I also do not understand your reasoning behind wanting to feel secure by being mortgage free. So long as you keep paying your mortgage payments you have security.