0% credit card or remortgage?

alec321

Hi, I'm hoping for opinions an optimal strategy to raise circa 40k. 

I need a 35-40k lump sum. I am currently in the process of product switching my mortgage and can take the additional borrowing at 3.94% on the new product. 

Alternatively, I am eligible for a 0% balance transfer credit card with Barclays over 29 months, I couldmake the minimum payments and clear at term with refinancing property or if cash flow allows from earned income. Essentially I could take advantage of the free money and hedge against the expectation that interest rates will hopefully be lower in 2026.  

I've had an Amex for years which I clear the balance of every month but have never taken on credit card debt so am naive about the best card for the purposes I need it for. 

If anyone has a view on the most cost effective strategy I'd like to hear it please. 

Thanks in advance, 

Alec

born_again

Odds on getting £40 K on a credit card.... I would say ZERO

MorningcoffeeIV

You'd likely need a fair number of cards to get to that sort of limit and you're unlikely to get 0% on them all, even if you could get close to that limit.  

You can't use a balance transfer card as you don't have a balance to transfer.  You'd need a purchases or money transfer card.

Remortgaging will depend on LTV, as well as affordability.

What's the money for? There may be more practical ways.

alec321

Ok cheers guys, money is for paying contractors and deposit on car purchase. The LTV and affordability is confirmed on remortgage as good to go. Sensible to just stick with the path of least resistance then?

Thanks for speedy responses..

BoGoF

alec321 said:

Ok cheers guys, money is for paying contractors and deposit on car purchase. The LTV and affordability is confirmed on remortgage as good to go. Sensible to just stick with the path of least resistance then?

Thanks for speedy responses..

No, not very sensible securing such debts on your property but I suspect you will do so anyway.

Nasqueron

Loan for a deposit on car purchase indicates a payment plan like PCP or similar - the loan will affect what you can borrow. Given the amount you want to borrow, you might be better going for a cheaper car for cash and work on paying off your mortgage before you add on even more debt.