Offest mortgage - Credit card transfer

Wardieb

I have searched google for hints or tips on the morality and legality of using credit card free interest transfers to sit in an account offsetting my mortgage costs.

If I borrow £X,000 pounds for 6 to 8 months on a credit card at 0%, plus 2.9% transfer charge and put it in an account next to my mortgage offset acc. I wont pay 5.4% interest on £X,000, therefore saving about 2.5% interest charges for 6-8months.

Is my logic correct, morally it my be wrong, but what about legally, any ideas anybody?

Has anybody tried this?

Ward, Cardiff

bermondse1

Not illegal at all, and very sensible.

Quote from the "stoozing" bit of the credit card section on this site:

"The highest amount at 0% I've ever heard of was £80,000 – netting that stoozer nearly £5,000 a year as the money was off-set in his mortgage. "

ThriftyBeanie

If you've searched google, I'm surprised you haven't already found answers to your questions.

It's perfectly legal, perfectly sensible, just requires a bit of savvy and discipline.

Here is this own website's guide:

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards?gclid=COjFv6HtqJMCFQFaMAodKkr0oA

Or, a whole website dedicated to it: http://www.stoozing.com/

Also google the word "stoozing" for other miscellaneous links.

Geoff13_2

I think you need to be careful on your calculations - if it's only for 6 months your transfer fee would need to be half your interest rate to start making any savings. Based on your figures above - example of £10,000 - transfer fee would be £290, but interest savings in your offset would only be £270. If it's for 8 months the saving goes up to £360

Wardieb

Thanks,

My wife tells my I'm no good at looking for stuff in the house, I had thought I was pretty good at looking for internet stuff, until now.

Thanks again for the info folks.

Ward