Credit card stoozing to pay mortgage
danfearn77
Forumite 19 Posts
Hi All
I have just got a credit card with a £12k limit. I have a mortgage of £520 a month but i currently overpay an additional £300 on top, so £820. I was just looking at my credit card and it is 0% on money transfers for 12 months, just a 3% initial fee. My thinking is this...Transfer say £5000 to my account (£150 fee) then pay the £5000 off my mortgage whilst still overpaying as before, and slowly pay the credit card down over the 12 months. Surely taking 5K off the mortgage should lower interest as it is calculated daily? What are everyones thoughts on this? Ive just received a promotion at work so we want to use this opportunity to build up equity. thanks
I have just got a credit card with a £12k limit. I have a mortgage of £520 a month but i currently overpay an additional £300 on top, so £820. I was just looking at my credit card and it is 0% on money transfers for 12 months, just a 3% initial fee. My thinking is this...Transfer say £5000 to my account (£150 fee) then pay the £5000 off my mortgage whilst still overpaying as before, and slowly pay the credit card down over the 12 months. Surely taking 5K off the mortgage should lower interest as it is calculated daily? What are everyones thoughts on this? Ive just received a promotion at work so we want to use this opportunity to build up equity. thanks
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I want to say its around 2.4% ish. So would this not be beneficial then? I just assumed that by paying a bulk off it would save me some £££ but if it doesnt i'll leave it!
So is it best i just up the overpayments instead?
Yes, or have you considered using your pay rise to increase contributions to your pension, which has tax advantages? It's also possible to do a bit of both - you don't have to put all your eggs in one basket.