FOAK: Linked Mortgages Part 2

Please tell me it's not a set of cushion covers.

 

In uk.rec.motorcycles, Krusty amazed us all with this pearl of wisdom:

It will be a pint of your favourite beer presented on a velour cushion
with tassly bits on the corners.

 

Ah right - so it works the same as a linked account re the interest,
but just does it a different way.

 

Krusty scribbled on the back of a napkin:

I looked into them when before I took out a mortgage to buy this place
here. Plenty of discussion on http://www.moneysavingexpert.com/ in the,
surprisingly enough, mortgages discussion board, same on the Motley
Fool (http://www.fool.co.uk/)

Yes, read the above. The usual advice is that you're probably better
off getting a regular fixed rate mortgage unless you've got
*substantial* savings that you somehow don't want to chuck at your
mortgage or are willing to stooz like mad.

And fucking paint may leave your dick coated in the wrong colour.

 

Stooz?

 

Stop it.

 

Let us know on how the decision goes, eh?

 

Ginge scribbled on the back of a napkin:

http://www.stoozing.com/

In this particular case, use the '0% on balance transfers' credit cards
to create a pot offsetting your mortgage so a larger part of the
repayment goes against the principal.

Some ex-colleagues did this rather successfully, one of them having his
whole mortgage on 0% credit cards for about 6 months.

 

Oh, so it has a name then? I was seriously considering doing this with my
MBNA card now that the dozy fuckers have given me a >£15k limit.

 

Dan White scribbled on the back of a napkin:

Watch out for balance transfer fees...

 

And the credit scoring.

 

Capped at £50.

 

Couldn't give a monkeys. Already got the mortgage and have cleared every
other credit card and finance agreement I had. Now I just have about 40k of
credit limit to play with

 

MBNA are fantastic for this. I've got three of their cards, & get a
never ending stream of 0%, 0.9% or 1.9% balance transfer offers. Once
the six months are up, pay it off, & wait for the phone call - usually
within a couple of weeks. Even at 1.9% & taking the fee into account,
you still make a few hundred quid profit. That profit will obviously be
greater with an offset mortgage as the interest is effectively tax free.

 

I've currently got a "completely flexible" mortgage with Northern Rock,
where you can overpay as much as you like, and also withdraw any
overpayments back into your bank account with one days notice.

Seeing as the mortgage interest is something like 5.9%, and MBNA were
offering me 1.9%, I was considering taking the 15k from MBNA and paying it
into my mortgage, using it to reduce the monthly repayments. Then when the
balance transfer rate promo is up, transfer the money back and pay the card
off. Effectively I will have paid 1.9% on 15k instead of 5.9%, right?

 

Yep, as long as there aren't any penalties on the mortgage for
draw-downs.