We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Overpay mortgage or balance transfer.
jinkssick
Posts: 1,323 Forumite
I have £800 but need to pay someone £800.
Do i overpay mortgage by £800 (mortgage rate is 2.14%)
And do a balance transfer from credit card with a 2% fee (12months 0%). I'm I right in thinking I would be 0.14% better by overpaying mortgage and doing transfer?!?
or Im I being thick?!?
Do i overpay mortgage by £800 (mortgage rate is 2.14%)
And do a balance transfer from credit card with a 2% fee (12months 0%). I'm I right in thinking I would be 0.14% better by overpaying mortgage and doing transfer?!?
or Im I being thick?!?
Save saynoto0870.com in your favorites, and stop giving companies more £££ dialling 0870 numbers when you can dial freephones or cheaper alternatives
call your credit card company, tell them that you want to leave, 99% of the time theyll lower your APR%
Remember when that Bank Manager or Salesperson smiles at you, all he sees is £ notes. Dont forget the motto, "the wider their grin, the more debt your in"
call your credit card company, tell them that you want to leave, 99% of the time theyll lower your APR%
Remember when that Bank Manager or Salesperson smiles at you, all he sees is £ notes. Dont forget the motto, "the wider their grin, the more debt your in"
0
Comments
-
just pay someone the £800 no need to overpay mortgageAn answer isn't spam just because you don't like it......0
-
From reading your other posts it looks like you’ve just bought for the first time.
Make sure you build up your emergency savings first before overpaying.0 -
The way I see it:
1. Really, you're talking about transferring £800 from a credit card to your mortgage. You might as well keep the £800 you're giving to that other person out of the equation, it doesn't even really matter for the calculation (you could also be talking about more or less money here as well).
2. Are you talking about a credit card that lets you withdraw cash? I don't think you can just use a 'balance transfer' to the mortgage, generally speaking, you'd have to get cash out of the credit card first (usually higher rates than just using cards to pay off another card, so sth to consider).
3. If your numbers are right, and you're saving 0.14% annually, then on £800 that would be £1.12 at the end of the year. Doesn't exactly sound like the most efficient money-making scheme in the world to me personally.0 -
Just pay what you owe and then focus on building up emergency savings (which you obviously dont have or you wouldnt owe someone £800) rather than overpaying or stoozing both of which will give minuscule gains.
Then after that consider your pension position before overpayments, which is highly overrated as a means of saving money.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards