interest free mortgage?

[cymtriks]

Just a thought...

Say I get a load of credit on an interest free card. I bung this into a "One account" or similar to offset my mortgage payments. Voila! effectively an interest free mortgage for as long as I keep moving the balance around on the cards.

Has anyone done this?

The only downside I can see is that if you didn't keep a very sharp eye on the card rates and keep transfering the balance around before any interest built up you might get a serious financial thumping. I suppose there is also the hassle of the constant juggling aswell.

On the "life on credit" thread there was someone who got interest free money to put in a savings account and pocketed the "free" interest. Surely an interest free mortgage is the next logical step??

Curious!

[z1000]

It's illegal , I believe to offer an interest free cash advance on a credit card , if that's what you meant , eg , you never get offered cashback on a credit card.

[bjwoods]

cymtriks said:

Just a thought... Say I get a load of credit on an interest free card. I bung this into a "One account" or similar to offset my mortgage payments. Voila! effectively an interest free mortgage for as long as I keep moving the balance around on the cards. Has anyone done this? The only downside I can see is that if you didn't keep a very sharp eye on the card rates and keep transfering the balance around before any interest built up you might get a serious financial thumping. I suppose there is also the hassle of the constant juggling aswell. On the "life on credit" thread there was someone who got interest free money to put in a savings account and pocketed the "free" interest. Surely an interest free mortgage is the next logical step?? Curious!

A 10K credit card 'loan' doesnt make that much of a dent on a 150k mortgage... The theory is sound though, but at say a 5.5% mortgage you would only save ~ £50 a month.

B

[B17NNS]

sounds good in theory.

the only downside I can see is the one you have already pointed out.

the industry is bound to clamp down on 'card surfers' in time and I wouldnt like £200k on a credit card when the interest rate jumps from 0% to 15%

[bigandclever]

Obviously can't vouch for all cards, but aren't the 0% offers based on balance transfers and new purchases, but specifically exclude cash advances? 'Tis the case for Egg anyway (and their cash advance rate is 17.9% pa)

[andy400]

Done this, still doing it. Only about one seventh of my mortgage amount in the offset, but it's saving me quite a bit and it all helps! I love free money - self confessed rates tart!!

[minimax]

z1000 said:

It's illegal , I believe to offer an interest free cash advance on a credit card , if that's what you meant , eg , you never get offered cashback on a credit card.

it's quite simple to ask the credit card provider to deposit your whole credit limit in to your current account to 'pay off an overdraft'

so you get a new card with an 8k limit, deposit the whole lot into your current account and then transfer it into your savings account or mortgage..works for me!

[Mr Whippy]

bigandclever said:

Obviously can't vouch for all cards, but aren't the 0% offers based on balance transfers and new purchases, but specifically exclude cash advances? 'Tis the case for Egg anyway (and their cash advance rate is 17.9% pa)

0% on transfers.

So draw out £5000 on one card in cash, and then transfer the debt to a new one with 0% on transfers.

Hmmmm, not sure on that though.

Dave

[bjwoods]

Mr Whippy said:

bigandclever said: Obviously can't vouch for all cards, but aren't the 0% offers based on balance transfers and new purchases, but specifically exclude cash advances? 'Tis the case for Egg anyway (and their cash advance rate is 17.9% pa) 0% on transfers. So draw out £5000 on one card in cash, and then transfer the debt to a new one with 0% on transfers. Hmmmm, not sure on that though. Dave

Most cards charge a % on a cash advance on a card though

[mcflurry]

bjwoods said:

Most cards charge a % on a cash advance on a card though

You need to find one card that does super balance transfers, i.e. pays money to a bank account. From memory there are 3 card companies that do it. This card is solely used for that purpose. Once you have that part of the puzzle it is easy. Do a google for stoozing or check www.fool.co.uk

[btsidi]

I have a £38,000 mortgage, with £37,950 offset at 1.9% fot the life time of the balance. The only downside is the minium payment of 3% each money means what I have to move the difference between my regular payment and the 1000-1200 a month they take every 6 months.

[bigandclever]

Well. There you go

www.stoozing.com