Mortgage Rate Rises

[platinum87]

Price is the point at which your desire to have them is greater than the desire to retain the money. For me, £50 is the line. If you think anything in the world is "cost plus" then you are misunderstanding the world.

I mean that savings does not count in terms of discount, i.e. you spent £50, you did not save £40, if the full price was £90.

Maybe you didn't mean that because it was a secondary point.

As for the credit card, i stoozed a long time ago, been there done that. My credit card balances are £0 right now.

 

[dlockers]

I mean that savings does not count in terms of discount, i.e. you spent £50, you did not save £40, if the full price was £90.

Maybe you didn't mean that because it was a secondary point.

As for the credit card, i stoozed a long time ago, been there done that. My credit card balances are £0 right now.

?? it was £90 unless I signed up for Frasers credit product was the point. You are making some other point entirely I think.

 

[Richie]

I'm sure you've already thought of this, but just in case - some providers have an overpayment cap of 10% annually before charges apply.

Yeah, its 10% of the outstanding balance as of Jan of that year so I would need to pay in about double my monthly payment to reach the limit

 

[IvanDobskey]

Yeah, its 10% of the outstanding balance as of Jan of that year so I would need to pay in about double my monthly payment to reach the limit

Mine is aligned with the financial year. So 10% of whatever the balance is on the 1st of April.

 

[BUDFORCE]

Can't have work eating into your gaming time during work hours now...

Legit worked till 4pm today, on Friday.....

I mean I did still have my lunch break and I am playing minecraft now, but even so, 4pm!!!!!

I'll need an early night!

 

[Syla5]

I am paying on a 35year and minimum rate. Yep the rest is on savings.

Also have about 45k credit card debt (0%)

Offset by 50+k in the bank earning interest..

Can i ask what the purpose of such large credit card debt is? Is it just to get setup with savings instantly with a comparable amount you would want to save monthly equalling your minimum monthly repayments instead of slow build up you're doing a big bang?

 

[dlockers]

Can i ask what the purpose of such large credit card debt is? Is it just to get setup with savings instantly with a comparable amount you would want to save monthly equalling your minimum monthly repayments instead of slow build up you're doing a big bang?

He will have £45k sitting at 5%. How you get there is up to you --- I generally take a 0% card, max it out, divide balance by interest free period, then pay the minimum monthly and lock the rest away (i.e. savings = (balance/period)-minimum payment). That way I guarantee I have 100% of the cash available when the term finishes. When it finishes, I then BT the amount, and just stock pile the cash. That way if the BT is even declined or an issue occurs I can just pay it off.

I have just started again on a 0% RBS card, so I'll rinse and repeat. By the end of that I'll have £8k+£6k in cash stockpile and hopefully a BT card that can take most/all of the load.

It is a separate process to "saving". This is just to maximize money earned in interest. I believe it used to be called Stoozing?

 

[413x]

I am paying on a 35year and minimum rate. Yep the rest is on savings.

Also have about 45k credit card debt (0%)

Offset by 50+k in the bank earning interest..

Yay someone else in same boat.
I thought I had a lot.
I'm sitting on 18k.

I have access to like 60k. Quite ridiculously really imo

Edit

 

[Buffman]

Can i ask what the purpose of such large credit card debt is? Is it just to get setup with savings instantly with a comparable amount you would want to save monthly equalling your minimum monthly repayments instead of slow build up you're doing a big bang?

Previously it paid for house renovations at 0%, now it's just stoozing/saving with about 1 year to 2 year flex so I don't need to carry any significant sums of cash.

Means I never have to pay interest. Eg I bought a car 4 years ago for about 10k on 0% credit cards (few places offer this but arnold Clark did)

Yay someone else in same boat.
I thought I had a lot.
I'm sitting on 18k.

I have access to like 60k. Quite ridiculously really imo

Edit

Eek just checked mines 39k out of a total 79k

 

[413x]

Previously it paid for house renovations at 0%, now it's just stoozing/saving with about 1 year to 2 year flex so I don't need to carry any significant sums of cash.

Means I never have to pay interest. Eg I bought a car 4 years ago for about 10k on 0% credit cards (few places offer this but arnold Clark did)


Eek just checked mines 39k out of a total 79k

I'm doing what you are doing.
Rather than getting a loan at x percent, I'm putting it on 0pc CCs

 

[Bassmansam]

This stoozing thing sounds good. How long interest free periods are people getting?

Do you put all the money in stocks and shares for 18/24 months?

 

[dlockers]

This stoozing thing sounds good. How long interest free periods are people getting?

Do you put all the money in stocks and shares for 18/24 months?

~18months on 0% and BT are similar. It's a timing thing.

Definitely not in S&S. Too much risk IMHO.

 

[Syla5]

He will have £45k sitting at 5%. How you get there is up to you --- I generally take a 0% card, max it out, divide balance by interest free period, then pay the minimum monthly and lock the rest away (i.e. savings = (balance/period)-minimum payment). That way I guarantee I have 100% of the cash available when the term finishes. When it finishes, I then BT the amount, and just stock pile the cash. That way if the BT is even declined or an issue occurs I can just pay it off.

I have just started again on a 0% RBS card, so I'll rinse and repeat. By the end of that I'll have £8k+£6k in cash stockpile and hopefully a BT card that can take most/all of the load.

It is a separate process to "saving". This is just to maximize money earned in interest. I believe it used to be called Stoozing?

What am I missing here? Surely the minimum payments on these is topping up to the equivalent that you would be spending/saving monthly and if you are balance transferring you are upfronting the fee comparable to interest anyway, so where do you get the benefit other than a stockpile of cash thats cost you a fee to get in the first place, and I’m guessing that the balance transfers had to start from a card you maxed out the limits on in the first place to be able to BT it over to 0%

 

[dlockers]

maxed out the limits on in the first place to be able to BT it over to 0%

Well yeah. You max out a 0% card over time but make sure you retain enough cash to clear the bill. The cash you are retaining you stick in a 5% acc.

 

[Buffman]

What am I missing here? Surely the minimum payments on these is topping up to the equivalent that you would be spending/saving monthly and if you are balance transferring you are upfronting the fee comparable to interest anyway, so where do you get the benefit other than a stockpile of cash thats cost you a fee to get in the first place, and I’m guessing that the balance transfers had to start from a card you maxed out the limits on in the first place to be able to BT it over to 0%

Can get 0% balance transfer at 0% fee previously but now there is less of them

But even if you have a 1% fee and it's an 18month period, you can get stick it in an easy access saver e.g. Marcus at 4.75% or ISA at similar.

The fact that you're paying in some small amount into it as minimum payments is minor, particularly if it's 0% purchases as you just top it back up.

I don't do it for the circa £2000 it makes a year but more as it was good for my cash flow position which was negative 40k for a couple years, and now it's easy money.

 

[Syla5]

Well nowhere is doing 1% fees especially not on cash transfers, you’re looking at 2.5% at the very very best and averaging 3.-3.5%

Also you have to have a couple of things going for you, from what I can work out:

1) you have items to pay for that will allow you to max a balance out quickly and would otherwise of had the cash to set aside or a good amount to set aside.

2) you still have to make 1% minimum payments on average so you have to have the capacity for this, and if you have the capacity for this then you could just be saving the equivalent of the 1% monthly’s anyway.

3) you need capacity for the savings to be shelled inside a tax free facility especially if a higher tax band incoming otherwise the benefits of the upfront stooze are wiped out.

@Buffman your situation makes more sense due to you being in a position where you needed to spend the money in the first place, however for those that don’t need to spend the money, there’s much smaller capacity to benefit when factoring in the BT fees especially.

 

[dlockers]

Well nowhere is doing 1% fees especially not on cash transfers, you’re looking at 2.5% at the very very best and averaging 3.-3.5%

Also you have to have a couple of things going for you from what I can work out:

1) you have items to pay for that will allow you to max a balance out quickly and would otherwise of had the cash to set aside or a good amount to set aside.

2) you still have to make 1% minimum payments on average so you have to have the capacity for this, and if you have the capacity for this then you could just be saving the equivalent of the 1% monthly’s anyway.

3) you need capacity for the savings to be shelled inside a tax free facility especially if a higher tax band incoming otherwise the benefits of the upfront stooze are wiped out.

@Buffman your situation makes more sense due to you being in a position where you needed to spend the money in the first place, however for those that don’t need to spend the money, there’s much smaller capacity to benefit when factoring in the BT fees especially.

Nobody is suggesting maxing out a 0% credit credit if you don't need to spend the money in the first place

 

[Buffman]

Well nowhere is doing 1% fees especially not on cash transfers, you’re looking at 2.5% at the very very best and averaging 3.-3.5%

Also you have to have a couple of things going for you, from what I can work out:

1) you have items to pay for that will allow you to max a balance out quickly and would otherwise of had the cash to set aside or a good amount to set aside.

2) you still have to make 1% minimum payments on average so you have to have the capacity for this, and if you have the capacity for this then you could just be saving the equivalent of the 1% monthly’s anyway.

3) you need capacity for the savings to be shelled inside a tax free facility especially if a higher tax band incoming otherwise the benefits of the upfront stooze are wiped out.

@Buffman your situation makes more sense due to you being in a position where you needed to spend the money in the first place, however for those that don’t need to spend the money, there’s much smaller capacity to benefit when factoring in the BT fees especially.

They aren't cash transfers, it's a balance transfer. Even balance transfers have got worse recently but there's zero fee 0% Apr examples here

Balance transfer credit cards

If you're paying interest, see if you can transfer your debt to a 0% deal. See Martin Lewis' top pick balance transfer credit cards.

www.moneysavingexpert.com

I have been doing this for 10 years no issues.


Your point 2 doesn't consider the point I made previous re: purchase cards

3) there are plenty cash ISAs offering circa 4 to 5%

 

[BUDFORCE]

The other thing to consider if you want to get a residential mortgage having a ton of credit card debt may screw you on affordability, even if you are using it a way that you benefit from.

 

[Syla5]

They aren't cash transfers, it's a balance transfer. Even balance transfers have got worse recently but there's zero fee 0% Apr examples here

Balance transfer credit cards

If you're paying interest, see if you can transfer your debt to a 0% deal. See Martin Lewis' top pick balance transfer credit cards.

www.moneysavingexpert.com

I have been doing this for 10 years no issues.


Your point 2 doesn't consider the point I made previous re: purchase cards

3) there are plenty cash ISAs offering circa 4 to 5%

The rates I mentioned are for balance transfers not cash transfers.


My 2nd point was about the minimum monthly payment that you have to make towards the credit cards. Unless something has changed, I’ve never seen a credit card that doesn’t require a minimum monthly payment.

The benefit of stoozing then becomes much smaller as its total balance in savings interest + costs (bt fees) - minimum monthly payment vs same minimum payment amount put in to savings earning interest.

Isa only useful if they aren’t already being maxed out.