I took MBNA offer.


D

Davao

Got a call yesterday from MBNA rep.
They offered me my credit limit as a cash advance interest free until
October.
But with a one time £75 arrangement fee. I accepted a rounded figure of
£12,000.
I have £750 to pay on another card so I'll clear that and put the rest into
the offset savings account. I have an interest only mtg of 52K. So for 5
months
or so, the mtg will be reduced to £41K.

Good call?

Thanks.

Arthur
 
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T

Tumbleweed

Davao said:
Got a call yesterday from MBNA rep.
They offered me my credit limit as a cash advance interest free until
October.
But with a one time £75 arrangement fee. I accepted a rounded figure of
£12,000.
I have £750 to pay on another card so I'll clear that and put the rest
into
the offset savings account. I have an interest only mtg of 52K. So for 5
months
or so, the mtg will be reduced to £41K.

Good call?

Thanks.

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

Davao

Tumbleweed said:
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%
 
S

Sam Smith

Davao said:
Got a call yesterday from MBNA rep.
They offered me my credit limit as a cash advance interest free until
October.
But with a one time £75 arrangement fee. I accepted a rounded figure of
£12,000.
I have £750 to pay on another card so I'll clear that and put the rest
into
the offset savings account. I have an interest only mtg of 52K. So for 5
months
or so, the mtg will be reduced to £41K.

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

mrcheerful

Sam Smith said:
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
 
V

Virgils Ghost

mrcheerful . said:
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.
A more brave or foolish (or both) man would have dropped it into gold, meep!
 
M

mrcheerful

Virgils Ghost said:
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
 
G

Gareth

Davao said:
Got a call yesterday from MBNA rep.
They offered me my credit limit as a cash advance interest free until
October.
But with a one time £75 arrangement fee. I accepted a rounded figure of
£12,000.
I have £750 to pay on another card so I'll clear that and put the rest into
the offset savings account. I have an interest only mtg of 52K. So for 5
months
or so, the mtg will be reduced to £41K.

Good call?
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.


--
 
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D

Davao

Gareth said:
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.
Yep. Already wary of this aspect.
Thanks.

Arthur
 
D

Daytona

Davao said:
Good call?
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
 
R

Ronald Raygun

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

Tim

Davao said:
Assuming no charges for overpaying your mortgage...
He's not overpaying his mortgage, he's using an offset savings a/c!

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...
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!
 
T

Tim

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

Ronald Raygun

Tim said:
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
15.83p interest each month and repay the £100 together
with the ninth interest payment.
 
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T

Tim

Daytona said:
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, ...
Probably more like 0.77 of it ...

... I get 4.687%, or 4.699% if you pay
15.83p interest each month and repay the
£100 together with the ninth interest payment.
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.
 

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