Credit Card/Mortgage Advice

Advice needed please....

I have a credit card with MBNA, who are offering 0% interest on money transfers until June 2010, they are charging 4% as a handling fee.

I am tempted to take £3000 and pay it straight off my mortgage which is currently at a rate of 4.99%...

So by my calculations I take the money from MBNA at a cost of £3120, I intend to pay the £3120 in June 2010 so will pay no further interest on that.

My question, is this a good idea, has anyone else done something similar to this?

Thanks in Advance

4 Comments

Banned

its a little like borrowing from peter to pay paul the only sure way you win is if you can deffo pay the credit card bill before the interest kicks in

so thats 1 percent per year over 9 months thats about £20

I don't think your allowed to do it either - the mortgage company won't accept a payment from a credit card so you'd have to withdraw the £3K as a cash withdrawal which won't come under the interest free option.

If you do find a way round that then it's still not worth the effort\risk for what your saving IMO.

Original Poster

worto03;6192982

I don't think your allowed to do it either - the mortgage company won't … I don't think your allowed to do it either - the mortgage company won't accept a payment from a credit card so you'd have to withdraw the £3K as a cash withdrawal which won't come under the interest free option.If you do find a way round that then it's still not worth the effort\risk for what your saving IMO.



From what I gather, they transfer the money to an account you designate, you can then transfer it to the mortgage, but as you guys say, it is probabaly not worth it.....Thanks for all your help everyone
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