I took MBNA offer.

I think so, I make that roughly 1% interest, presumably you are offsetting a mortgage at about 5 or 6%?

Yes, I think I'm paying on 5.5%

Sounds like a good move to me. Not what the credit card companies are expecting - intelligent investment :)

this is called stoozing. I have earnt 250 pounds since Christmas using interest free loans, the fees were about 100 total. A most refreshing turn around. Even if you only transfer it to a high interest (on credit) credit card , such as an egg money account, then it will be profitable.

mrcheerful

A more brave or foolish (or both) man would have dropped it into gold, meep!

I did, I bought 2000 of gold before Christmas and resold for almost 200 profit, I see it is still going up though!!

mrcheerful

Assuming no charges for overpaying your mortgage and that you pay off the MBNA card before they start charging interest, yes.

Although there is no interest, you will probably still have to pay off some of the balance each month. This is typically 2 or 3 percent. 3 percent of 12000 is 360 quid. Make sure you pay it on time or they will probably terminate the 0 percent offer.

Don't forget to allow time for the money transfered back to the MBNA card to clear, and if you cannot transfer directly from your mortgage to the credit card you will need to allow extra time. Work out when you need to start transferring money and write it in your diary/calendar now.

Gareth.

"Commodity prices have dropped on Friday, halting the recent powerful surge that set new records for the price of crude oil, gold and silver."

Yep. Already wary of this aspect. Thanks.

Arthur

You got a bloody good deal !

I take advantage of every deal offered by Egg and MBNA which is 1 a year each. Last time I got 9 months at 1.9% with a 2% fee. Although after they failed to implement the direct debit change from paying the full balance to paying the minimum amount each month leading to failed DD fees (which I must challenge under the 6 year OFT rule) and they failed to implement the discount rate, they changed it to 0% for 12 months saving me £600.

Coupled with the £200 saving from my Egg anniversary offer I saved £800 in total last year.

It's great news for those of us intelligent enough to take advantage :-)

Daytona

That sounds pretty naff. I make the APR over 5.3%, which is more expensive than a typical mortgage.

"Gareth" wrote

He's not overpaying his mortgage, he's using an offset savings a/c!

"Gareth" wrote

This is where MBNA is better than other cards. MBNA's minimum is just 5 plus any interest added that month (plus any payment protection insurance premium).

As the interest is 0%, then assuming he doesn't accept the rip-off insurance, then the minimum payment is only 5 per month - regardless of balance. He'll only need thirty quid between now & October!

"Ronald Raygun" wrote

I make it more like (just under) 4.7% APR.

Not fantastic perhaps, but you should still be able to make a little money out of it!

OK, I was being a bit brutal in taking that to mean that you would borrow £100, paying a 2% up front fee (in effect borrowing £98), and that then after 9 months you would owe £101.90, i.e. that the rate for the 9 months would be 1.9%. If it's only three quarters of that, I get 4.687%, or 4.699% if you pay

"Ronald Raygun" wrote

Probably more like 0.77 of it ...

"Ronald Raygun" wrote

Actually, with MBNA it would be:- Borrow (say) 10,000 at time 0 months. Pay 205 at time 1 month. Pay 5 at time 2, 3, 4, 5, 6, 7 and 8 months. Pay remainder (9,960 plus all the interest) at time 9 months.