Credit Card Mortgages

neil8181

How do these work?

Can they work?

I mean, we have a 60k mortgage, would it be possible to get say...7 x 0% credit cards and keep transfering year after year?

This sounds high risk to me.

lisyloo

Not quite sure what you mean by "credit card mortgages" but I'll have a guess.

If you have a flexible or offset mortgage then you can offset or pay in money that you get from 0% credit cards.
When you have to pay them off then you simply withdraw the money.

Yes it can work providing
a) the deals are available
b) they allow SBT (a way of physically getting the money out)
c) the fees are not prohibitively large (most have BT fees of around 3% these days).
d) You have a good creidt rating and not too much available credit already.

would it be possible to get say...7 x 0% credit cards and keep transfering year after year?

I'm not sure there are 7 different SBT cards available.
Theorectically yes.
Whether you can find the deals to this extent - I doubt it.

This sounds high risk to me.

I'm not sure it's acheivable to the extent you describe.
However it's very low risk once you have the cards.
All you have to make sure is that you MUST make the minimum payments on time and you MUST NOT spend on the cards on which you have transferred.

The benefits are of course reduced by the BT fees.
So lets say you mortgage is 6% but the BT fee is 3%.
Then approximately you can save half your interest e.g. 3%.

YorkshireBoy

lisyloo wrote: »

I'm not sure there are 7 different SBT cards available.

You only need the one lisyloo...Egg Money.

Even if the OP can only get half their mortgage amount on 0% credit cards, the benefits can be significant.

http://www.stoozing.com/g_offset.htm

nomoneytoday

It's possible, but unlikely that the card companies would lend you £60k of unsecured cash...

NickX

nomoneytoday wrote: »

It's possible, but unlikely that the card companies would lend you £60k of unsecured cash...

It can be done - I have borrowed this much before, and on the stoozing board there are reports of people getting up to £250k. One poster has used the funds to invest in buy-to-let properties and has a portfolio of several million now.

neil8181

I think I get it