What do stoozers do with the money they gain?

cloud_dog

I'm with Co-Operative Bank and can happily recommend them.  Many people on the fool boards have also said the same thing.

You'll need their Flexible Tracker mortgage which charges 5.3% for mortgages up to 75% of the property value, or 5.5% otherwise.  There's an acceptance fee of £399.

Thats a pretty good rate for a flexible / tracker mortgage for 5 years but............... I really like the idea of a flexible / off-set mortgage but can never get around the numbers; at the moment I (we) have:

1. Mortgage at 4.79%
2. Savings earning 5% (gross) with some now going into Abbey Flex Saver

So until the borrowing rate increases above what I can get for my savings I cannot justify it (financially) - not that anyone's asking me to, just thought I'd comment.

BTW the mortgage is with Nationwide and I can withdraw the sum of overpayments without incurring additional costs (overpayments of upto £300pm allowed).

cloud_dog

Martinslovechild

Cloud_Dog,

5% gross savings will net you 4% net as a basic rate taxpayer, or 3% net as a higher rate taxpayer.

As a comparison, paying cash into a 4.79% net mortgage rate is the equivalent of earning 5.98% gross as a basic rate taxpayer or 7.98% gross as a higher rate taxpayer.

In summary (Gross Rates compared)

Basic Rate - 5% vs 5.98%
Higher Rate - 5% vs 7.98%

Once you see these figures, it's a no-brainer really.

£300 a month overpayments is pants if you want to stooz. I've got nearly £40,000 stoozed in my mortgage account - that would be impossible on your deal with the Nationwide.

Remember - the more you stooz, the more your 'real' mortgage rate drops. My pay rate is somewhere nearer to 1.9% even though my quoted rate is 5.5%.

smartsaver

Thanks for this MLC you are a real star. I am reading this with great interest  :)

cloud_dog

Cloud_Dog,

5% gross savings will net you 4% net as a basic rate taxpayer, or 3% net as a higher rate taxpayer.

As a comparison, paying cash into a 4.79% net mortgage rate is the equivalent of earning 5.98% gross as a basic rate taxpayer or 7.98% gross as a higher rate taxpayer.

In summary (Gross Rates compared)

Basic Rate - 5% vs 5.98%
Higher Rate - 5% vs 7.98%

Once you see these figures, it's a no-brainer really.

£300 a month overpayments is pants if you want to stooz.  I've got nearly £40,000 stoozed in my mortgage account - that would be impossible on your deal with the Nationwide.

Remember - the more you stooz, the more your 'real' mortgage rate drops.  My pay rate is somewhere nearer to 1.9% even though my quoted rate is 5.5%.

Sorry MLC, I should have been more explcite. I am a higher rate tax payer whilst mrs cloud_dog does not (currently) pay tax therefore the 5% savings account (and the Abbey MFS 7%) is all being paid gross.

cloud_dog

Martinslovechild

Sorry MLC, I should have been more explcite.  I am a higher rate tax payer whilst mrs cloud_dog does not (currently) pay tax therefore the 5% savings account (and the Abbey MFS 7%) is all being paid gross.  

cloud_dog

OK - if we're talking gross, then you're correct - you're beating the 4.79% rate by 0.21%. However - if she ever goes to work, then you need to swap your payments into the mortgage.

Unbelievable_2

I know this isn't exactly related to the gains of stoozing but I wondered if I was the only one with this 'problem'.

I have had a Barclaycard since 1985 (now Platinum) and until March this year it was my only credit card. Now I have more cards than you can shake a stick at (whatever that means) and about 51k stoozed in Cahoot and Egg.

My problem is that I cannot bring myself to get rid of the Barclaycard. I have a large credit limit and no balance, which in stoozing terms is complete pants, but I find I have an emotional attachment to it much like you would have to a teddy bear (although I don't take my Barclaycard to bed with me!). Does this make me a tart with a heart or just a silly old tart. Maybe I need to spend my stoozing profits on a visit to a trick cyclist? Help :-[

Joe_Bloggs

@Unbelievable
If you try and get rid of your Barclay card they may offer you more 0% balance transfer oppertunities. A long held card is a worthwhile thing to have where credit scoring is concerned. You can always decline to close the card for semimental sentimental reasons.
J_B.

smartsaver

I know this isn't exactly related to the gains of stoozing but I wondered if I was the only one with this 'problem'.

I have had a Barclaycard since 1985 (now Platinum) and until March this year it was my only credit card.
My problem is that I cannot bring myself to get rid of the Barclaycard. I have a large credit limit and no balance, which in stoozing terms is complete pants, but I find I have an emotional attachment to it much like you would have to a teddy bear (although I don't take my Barclaycard to bed with me!). Does this make me a tart with a heart or just a silly old tart. Maybe I need to spend my stoozing profits on a visit to a trick cyclist? Help :-[

Husband had same problem. He had a Barclaycard with 20k credit limit that he was not using but had had the card since he started work at 16 I am a mean woman so I stood next to him with a big stick (most likely the one you are talking about shaking ;D) while he phoned to cancel You'd have thought I was torturing him... He has recovered now though. Esp as the stoozing profits are taking us to Antigua for a week tomorrow 8)

Martinslovechild

The stoozing profits are taking us to Antigua for a week tomorrow  8)

37 payments to go on my mortgage thanks to stoozing.  Then watch me go in the Hi-Fi shops!!!

As vanoonoo would say, "weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee"

Unbelievable_2

Esp as the stoozing profits are taking us to Antigua for a week tomorrow  8)

OK - I'm gonna do it - but I'll wait till Mr Unbelievable gets in. When he sees the stress it's caused he's sure to book a holiday in the Maldives to help me recover ::)

J_B

I don't think Barclaycard are renowned for making generous gestures - but I'll let you know