Money transfer too make mortgage overpayment

loveyourmoney

Hi all


Am always pondering ways to save money - was wondering if you had any thoughts on using a 0% money transfer from a credit card (with a low fee) to make an overpayment on a mortgage?


Thanks


LYM

MallyGirl

if the MT fee is less than the mortgage interest rate, AND you have a way of paying off the MT at the end of the promo period, then this works. I have been doing this for years but I have a flexible offset mortgage

loveyourmoney

MallyGirl wrote: »

if the MT fee is less than the mortgage interest rate, AND you have a way of paying off the MT at the end of the promo period, then this works. I have been doing this for years but I have a flexible offset mortgage

Do you know the extent of the savings you have made in terms of the interest paid? I find this fascinating!!!

MallyGirl

Never added it up, but some years ago when the mortgage rate was higher and Egg gave fee free money transfers it was really worth doing. Now there is less to be made but I have already been mortgage free once, helped by this method, and will be mortgage fully offset on 0% cards by next month (on a house worth £1million or so)

loveyourmoney

MallyGirl wrote: »

Never added it up, but some years ago when the mortgage rate was higher and Egg gave fee free money transfers it was really worth doing. Now there is less to be made but I have already been mortgage free once, helped by this method, and will be mortgage fully offset on 0% cards by next month (on a house worth £1million or so)

Crikey - makes my little house look like an outhouse :P - good on ya though

MallyGirl

live in south east. Bought a couple of 'projects' and did a lot of work to them whilst living in them, and have been a home owner for 25 years - it all helps.