Rate tarts wanted for a case study

the_councillor_2

just started the tart thing. having an offset mortgage means you reap the rewards in the most efficient manner.

got bcard with a credit limit of £3.5k 0% for 9 months, have just applied for sainsbury 0% for 12 months.

i worked out that for every extra £1k kept in your offest mortgage, it is worth £6 per month. This soon adds up, if you had £10k, you save £60k per month.

would consider talking about my experiences.

thanls

DizzyandJake

I have been 'tarting' for some time now, even before i found this web site. Although with Martin's help (and Tart Alert) this is a lot easier now. If i can help your case study then i will. x

imported_smarty

I have used a succession of cards over the last 4 years or so so that I have constantly had a card with 0 per cent interest. Once the card runs out of the 0 per cent facility, i cancel it. So far, i have bought and installed an entire kitchen, bought a car, decorated my entire house, laid a laminate floor, paid off my car insurance and a whole host of other miscellaneous items all without paying a penny in interest. This has saved me literally thousands that i would have had to pay in interest and allowed my finances to stay in the black and enable me to afford things that i otherwise would not have been able to do. All the items i have used it for are things that I had to buy or do, so were not luxury items as it were. I just pay what i can afford back each month until the amount is paid off in full, so i am not accruing debt either. I would be happy to be used as a case study.

Reaper

i worked out that for every extra £1k kept in your offest mortgage, it is worth £6 per month. This soon adds up, if you had £10k, you save £60k per month.

I think you need to check your maths. Firstly, I think you mean £60 not £60k! Secondly, to save £60pm would mean your interest rate must be 7.3%. If so I suggest you switch you mortgage to somewhere cheaper!

Martinslovechild

I think you need to check your maths. Firstly, I think you mean £60 not £60k! Secondly, to save £60pm would mean your interest rate must be 7.3%. If so I suggest you switch you mortgage to somewhere cheaper!

Agreed.

I currently have £59K stoozed in my flexi mortgage account and it saves me £268 per month in interest.  My interest rate is currently 5.54%.

On this basis, £10K would generate a monthly saving of £45.42.  I therefore agree with Reaper as I also calculate your mortgage rate as 7.318%, which I also say is unrealistic (unless you haven't changed it since 1993 maybe!!!??).

the_councillor_2

friends, my information comes from what mortgage magazine.

their information states that for a repayment mortgage the cost per £1k is

at 6% £6.44 per month, i pay 5.95% with IF.
at 4% £5.28 per month, at 5% £5.85% per month, at 7% £7.07 per month.

you may have forgot to remove the capital payment, it is not just the interest you pay on a repayment mortgage.

thanks

Martinslovechild

You may have forgot to remove the capital payment, it is not just the interest you pay on a repayment mortgage.

Councillor,

You're correct - I was only looking at the interest. Because I effectively don't pay any (because i've got an amount in my flexi mortgage effectively equal to the amount I owe), i'm only ever paying off capital.

Reaper

you may have forgot to remove the capital payment, it is not just the interest you pay on a repayment mortgage.

I see your point, but to stop paying off any of the capital while you have stoozed money seems unwise, and when measuring the savings is not comparing like with like.