Lowest monthly repayments - interest only credit card???

gwyndy_05

This is my first post so please forgive me if I do anything wrong.

I need to borrow £7.5K for a period of 6-12months, after which I will be able to repay the amount in full. What I need is the lowest possible monthly payments on this.

I have looked at temporarily adding it to my mortgage but this is not possible as it would affect the deal rate I am currently on.

As it is for a short term I thought of doing a BT on a credit card but minimum payments seem to be around 2%.

Someone told me that there was a credit card out there that did an interest only minimum monthly payment. Has anyone heard of this or know where I can get one?

Any other ideas appreciated!

Thanks,
Chris

YorkshireBoy

MBNA run cards have the lowest minimum payment, at £5/10/25 per month during an introductory 0% period.

They will also pay money into your current account at 0%, known as a Super Balance Transfer.

Be aware that, because the (S)BT fee is collected with the first minimum payment, the first payment will be around 3% of the balance.

For a list of MBNA run cards, see www.stoozing.com/cards.htm

GeorgeUK

You might have trouble getting that much credit on a single card. I haven't been able to find any tools that have a search facility for lowest repayment, but if you can't find anyhting, i would suggest looking at the cards offering the longest 0% Balance Transfer deals. Because you're not paying interest, the payments will reduce each month - it might be best looking at the repayment rates for those that offer a year for their promotional rate.

Hopefully others can suggest cards that may give that much credit (alot will depend on your income).

good luck
Edit: you may want to look at uswitch for comparing some of the deals currently offered

YorkshireBoy

GeorgeUK wrote: »

I haven't been able to find any tools that have a search facility for lowest repayment...

Although not 'searchable', you may find this table useful: www.stoozing.com/0fees.htm

gwyndy_05

Thanks for the advice! Stoozing.com proved very helpful with its 'min pay' column.

On there I have found an Abbey card with min pay £5 and BT rate of 2.5%

Just to double check though - it says in the summary box
'The minimum payment will be the lesser of:
- 2.25% of the balance.......
or
- the total of payment protection premiums plus interest and fees charged on the statement, plus £5'

Am I therefore correct to assume that my 1st month bill would be the 2.5% transfer fee + £5 and the second month to be just £5?

PBA

gwyndy_05 wrote: »

Am I therefore correct to assume that my 1st month bill would be the 2.5% transfer fee + £5 and the second month to be just £5?

Yes. Remember Abbey aren't MBNA any more so they've stopped doing SBT, so you'd have to do a BT to another credit card to get the 0%.

Note, there's an ongoing thread about delays with postal/internet applications. If you need the card quickly, apply in a branch and it gets approved straight away.

Moggles_2

As noted above, Abbey cards are no longer underwritten by MBNA.

If I were you, I'd go for an MBNA card like Alliance & Leicester, the MBNA Platinum card or Virgin. There are lots to choose from

YorkshireBoy

PBA wrote: »

Remember Abbey aren't MBNA any more so they've stopped doing SBT...

I've just telephoned Abbey twice to get clarification on this. Both times I've been told that many of the old (MBNA) card's features have been transferred over...namely the low monthly minimum payment and the ability to transfer overdrafts to the card.

Obviously this is just the word of a couple of CSA's (there's nothing in the online T&C's, but then again the SBT feature wasn't mentioned in the old MBNA T&C's either), but both were quite adamant that this was the case and each was very happy to give me their full names and extension numbers as 'surity'.

Moggles_2

Well, I have the Abbey card and have experienced one hiccup after another since the switch to Santander. Honestly couldn't recommend this card.

You'll be fine with MBNA, provided that you stick firmly to the Ts & Cs