Should I transfer the 2450 mortgage to a 0%credit card

Dawson01

I only owe £2450 on my mortgage at approximately 3.5% interest.  I just can't decide which is better as it will be paid by the end of the year.

[Deleted User]

The money transfer fee is going to massively outweigh the savings. 

Doozergirl

Doesn't the credit card charge you a transfer fee of around 3.5% anyway? 

Overpay the mortgage and get it cleared as soon as you can, no? 

Mahsroh

As above. What's the Money Transfer fee? If the £2450 is going to be paid off by the end of this year anyway at 3.5%, the chances are the transfer fee will be more than the interest saved on the Mortgage. 

theartfullodger

I doubt a 0% credit card would permit paying off a mortgage:  They're usually only interested in picking up all your other credit cards, then charging you loads when you don;t clear the total.

Check early repayment charges with mortgage lender.

Thrugelmir

How are you going to BT the cash to the mortgage lender? 

Noneforit999

As said above, I am not sure how you can transfer that money from a CC to the mortgage lender?

Even if you could do a balance transfer, the fee would likely be the same or similar.

Personally I would load up the CC with my main spending over 2-3 months and save the cash I would normally spend on that and then pay the mortgage off. That way you avoid any fees. 

sammyjammy

You'd be looking at a fee free card that allows you to do a cash transfer to your bank account.  Check out current offers but I'd be surprised if there any about.

ETA cheapest is MBNA at 2.99% fee but seriously that amount of interest payable on your mortgage is minimal just overpay and get rid.

Mahsroh

A few people questioning the mechanics of how the OP would do it..... 

You don't do a Balance Transfer, you do a Money Transfer then simply pay the balance of the mortgage on receipt of the cash. I've done 3 or 4 Money Transfers for different things over the years and never once been asked what it's for.....I could spend it down the pub for all the CC provider cares. 

That's not to say I think it's a good idea - generally 0% Money Transfers have a bigger initial fee than Balance Transfers and as already said by myself and others, I can't see how it would be financially beneficial to the OP to do it. 

getmore4less

Cheapest way to get CC money is a purchase card with no fee then just put normal spends on it and use the cash to overpay.


 

amount	rate	payment	owing	interest
£2,450.00	3.50%	£248.95	-£0.00	£39.47

amount	rate	payment	owing	interest
£2,489.47	0.00%	£248.95	£0.00	£0.00

Any BT fee to be under 1.611% (£39.47)

london21

Personally will just overpay it by the 10% allowance, clear it and be merry! 

You are nearly mortgage free.