russ295 Posted November 25, 2007 Report Share Posted November 25, 2007 hi simon, at the minute i am stick with the NR for my home mortgage but early next year i am looking to get a drawdown mortgage, (any suggestions?), then i am going to try and stuck some of the balance on cards, been doing my sums and its looking to be a little money saver, have read most posts about cards but could do with some advice about getting the cash into my bank so it can be paid off against the mortgage, what cards will let me do this and how do i go about it, any advice is welcomed. russ Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 25, 2007 Report Share Posted November 25, 2007 hi simon, at the minute i am stick with the NR for my home mortgage but early next year i am looking to get a drawdown mortgage, (any suggestions?), then i am going to try and stuck some of the balance on cards, been doing my sums and its looking to be a little money saver, have read most posts about cards but could do with some advice about getting the cash into my bank so it can be paid off against the mortgage, what cards will let me do this and how do i go about it, any advice is welcomed. russ Hi Russ First let me start by saying i am not a mortgage broker or advisor ! I would get an offset M (INTERSEST ONLY) on own home (these are available self cert so you dont need to "prove" income just a nice letter from acc will suffice) i use BOS as at the time they had best deal (1% over base) not the cheapest way of financing (at first glance anyway...but provide incredible flexibilty for peoplelike me ..and prob you) ..... You will get 85-95% LTV basiclly it works like an overdraft with the limit set by the(85-90%) MV of prop ....you get a cheque book and can draw up to that limit as often and whenever you like ...interest is daily and you only pay interest on what you owe ! Also as prop increases in value you can increase your "overdraft".......(we like this !!!!) Now add in CC 0% tx, savings and any other surplus cash you can get your hands on and things start to get interesting ! If you have some "cash" on deposit then you will get , what 6-7 % in an ISA or 5-6 in a BS acc? First 3K in ISA will be tax free and thats your lot ....BS acc by the time you have paid tax on int barely keeps up with inflation meaning that you are almost "losing" money... If you "offset" this "cash" from your mortgage you will "save" (or make ...profit even) to the tune of around 7% of the amount .... If you crunch the numbers down this has a dramatic effect on global finances ...if you are self employed and put your tax and VAT money aside (does anyone actually do this !!!!LOL) then this is the temporary home for sure) or have savings etc then put it all in your offset acc , use credit cards to bal tx 0% (yes even with 3% tx fees you are still saving/making a lot of money!) i know quite a few people ..me included....who run CC at 100-200K permamently on 0% (this has taken several years to acheive ..but dont be put off ....10 cards with 10-15K is acheivable over time ...if you have a wife/partner then get half each!) If you use CC to run your daily expenses and pay THESE off at the end of every month then that will put another months "money" in the kitty ... Now commit to pay the mortgage at the original rate and you will start making fast inroads into the capital borrowed whilst making far more "interest on your "savings".... The overall effect is very benificial ......and when a "bargain" prop comes along ...just pay with cash !!!!! ...we do !!!! Also for tax efficiency if over the years you have put your "own"money up as deposits on other BTL props then now will be the time to have an overall finacial restructure and REM that dep money back to you in CASH ..this will further reduce you capital OS on home (which clearly you cannot offset against tax!) The other effect of course is that your BTL M goes up reducing your tax liability there ...... This is a basic over view of the methodology employed ....you will need to crunch the numbers , i think you will be amazed at the difference it will make to your overall all position ......Let me know !!!! AND in answer to the first question Use mbna (they will let you have upto 5 accs /cards..either direct or thru associates ..virgin,halfords,dogs trust,mensa..etc) They will also let you move the "credit" from one card to another ie when 0% runs out on one card just get another new one DONT close the old one until you have added the credit allowance to the new one and so on .....(MBNA are absolutley the best and an essential part of doing this if you want to "play" the cardtart properly ! They will also allow tx direct to a bank acc EGG are a close second ...and will give you a 0% anniversary although at present only for 5 months ..which is not brilliant but you still make money using the above and allow tx to bank acc.. There are others which will allow it ..JUST ASK before applying to work them into the plan ...those that wont we use to pay off those that will at end of 0% (just b4 we move Credit facility to new acc with same provider ...) You keeping up !!!!!!!!!!! Easy peasey ....LOL You will require : 1x pencil 1x Piece of paper 1x calculator Have fun ! Simon Link to comment Share on other sites More sharing options...
russ295 Posted November 25, 2007 Author Report Share Posted November 25, 2007 i already have the pen and calculator its just the paper has ran out! will keep you posted russ Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 26, 2007 Report Share Posted November 26, 2007 Looking good Russ ?? Link to comment Share on other sites More sharing options...
russ295 Posted November 26, 2007 Author Report Share Posted November 26, 2007 it does simon, basically the way i see it is, i am getting my mortgage rate at whatever the transfer fee is for a year, so if the rate is 5.5% for mortgage and the tx rate is 3%, i am scoring for 2.5%. so if the amount on cards is 50k i save 100 notes a month for filling in a few forms and a few calls. russ Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 26, 2007 Report Share Posted November 26, 2007 That's just the start..... If you keep you monthly M pymt as b4 then and it is Int only then "overpayment" will reduce capital loan ...meaning no more interest payable on "That portion" for rest of term ..potentially 25 years interest on £50000 on your figs ...(as long as you keep rolling the 50K onto more 0% cards !)so if you do the above you are going to save tens of thousands long term ....which i think you will find is a hell of a lot more than 2.5% This will adjust your figures considerably, in your favour long term ..... less of course the mthly payment to CC ...there is a good reason why i suggested mbna as you may be very surprised at what your mthly pmt is ...i know of an acc with a 50k bal tx ....mth pmt £5 !!!!!! All good gear !! And just the start of it .......Martin Lewis has a web site which details lots of little "schemes" but barely scrapes the surface of what you can really make if you start getting "proper" creative .......as i have stated b4 most of my crew have become millionaires thru the sole use of CC to prop up creative prop deals ..... But as a temp home for CC money Home mort is best place for it !! S Link to comment Share on other sites More sharing options...
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