Turning secured into unsecured

RavingMad

Hypothetically, should I pay off my 5k mortgage that's up for renewal next year with a money transfer from a CC? 3% transfer fee and have it paid off in 12 months.

Assuming I can get 3% (or even 5%) transfer fee next year

Isthisforreal99

Should you? Depends on your circumstances.

If you do decide to go ahead then you can do better than paying a 3% fee if you have the right cards and prepared to do a bit of shifting.

e.g. MBNA just offered me money transfer with no fee but 3.9% APR. So I then get a new card with a 0% balance transfer offer (with no fee). Money transfer from MBNA to current account then balance transfer from MBNA to new card. At most, a couple of £ interest on the MBNA card for the day or so it had a balance.

jimjames

For £5k is it worth the hassle? Why not just continue to pay the mortgage for the next 12 months. If you want to stooze credit card then why not get a 0% purchase card and it won't cost you the balance transfer fee.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82192763#Comment_82192763

Depends on the term left? 'Only' £5k at 5% interest over a few years is best substituted for no interest no?

RavingMad

What happens if there's less than 2 years left to run when renewal comes around? Will I get the option to choose a product under 2 yrs? This is with HSBC

TrickyDicky101

https://forums.moneysavingexpert.com/discussion/comment/82192780#Comment_82192780

Why would OP pay off the credit card within a year but pay off the mortgage alternatively over a couple of years? That makes no sense.