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Transfer Cash into bank account to pay lump sum off of mortgage
David455
Posts: 1 Newbie
Hi everyone,
looking for some advice. I am looking to overpay my mortgage by £100 a month. My mortgage is currently at £115k with 34 years left on it. It is my understanding that my interest rate sitting at 3.44% is calculated daily so it led to me to think could I transfer cash into my bank account and pay off my credit card as its 0%. My credit card will charge me 1.9% for the cash transfer.
For example if I transfer £1000 into my bank account, it will cost me £19. If I were to use this to overpay my mortgage I will save £2176 using the mortgage overpayment calculator. I then pay off my credit card bill of £1019 before any additional costs and it works out £1157 less.
Is this true or am I wasting my time?
Thanks for your help!
looking for some advice. I am looking to overpay my mortgage by £100 a month. My mortgage is currently at £115k with 34 years left on it. It is my understanding that my interest rate sitting at 3.44% is calculated daily so it led to me to think could I transfer cash into my bank account and pay off my credit card as its 0%. My credit card will charge me 1.9% for the cash transfer.
For example if I transfer £1000 into my bank account, it will cost me £19. If I were to use this to overpay my mortgage I will save £2176 using the mortgage overpayment calculator. I then pay off my credit card bill of £1019 before any additional costs and it works out £1157 less.
Is this true or am I wasting my time?
Thanks for your help!
0
Comments
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it will save you money but not as much as you think because you have counted the £1k over the full term not the time you have it borrowed..0
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