Overpay Mortgage or 0% credit card

cjjb86

Hello Everyone

The end of my introductory 2 year fix deal will come about August next year. I will outline my debt below. My total mortgage amount as it stands is £107,000 approx at the moment. I'm thinking of going onto a tracker mortgage as me and my partner might buy together in the next few years and I don't want to be locked into a fix with early repayment charges. Anyway, I will need to remortgage unless we move by then.

2,000 credit card 0%
12,000 car loan 6%.
107,000 mortgage 1.5% intro fix upto 4.8% after 2 years.

I'm trying to decide wether I should concentrate on clearing my 0% credit card off or overpay my mortgage. Which is more likely to help me get the best deal on the market at the remortgage? The car loan would ideally be paid down but its a hire lease so its barely worth overpaying as the plan that its on. The mortgage i'm on allows upto £1000 pm overpayments.

Thanks

Thrugelmir

Overpay the mortgage whilst putting enough aside to clear the remaining balance on the credit card when the 0% promotional rate ends. Seems a sensible short term approach. As next August approaches you can then make a longer term decision as to your next move. Of course much depends on how much you have to put aside.

enthusiasticsaver

Does it have to be either/or? Why not overpay the mortgage and also make higher payments on the credit card or save it as Thrugelmir suggests so it is ready to pay off either when you apply for remortgage or the deal ends?

Having a low LTV gives you access to the best interest rates for your remortgage

getmore4less

You cash flow analyse.

For the CC you work back from the day the interest rate goes up and make sure you have enough time to save the amount needed.

Probably more important is reviewing your car strategy

System

Stooze the credit card cash in a savings account, try to balance transfer as much as you can to a new 0% deal before current deal ends, then repay what you cant tansfer. The amount you are able to balance transfer is the amount you can repay by

Although personally I'd invest instead if I wasn't moving soon