Banks still giving away free money?

[NorthWestPerm2Contr]

But isn't minimum payment calculated based on the interest and the outstanding balance?

well since it's interest free it means it is calculated on the outstanding balance! You answered your own question there!

[NorthWestPerm2Contr]

Yes that's understood - but my question is how do you get £10k out of a CC account? I haven't seen such an option on my online CC banking accounts and I can't imagine you're suggesting taking it out as cash

When you open up one of these specific accounts you simply log on and follow the instructions. 7 days later the money is in your account. That's all!

[d000hg]

well since it's interest free it means it is calculated on the outstanding balance! You answered your own question there!

No I meant, isn't minimum payment based on balance * interest rate? Or do banks have to follow some rules that the minimum payment is always MORE THAN the interest, to stop you remaining in debt for ever?

[NorthWestPerm2Contr]

No I meant, isn't minimum payment based on balance * interest rate? Or do banks have to follow some rules that the minimum payment is always MORE THAN the interest, to stop you remaining in debt for ever?

Minimum Repayments credit cards - BEWARE!! - Money Saving Expert

[northernladuk]

No I meant, isn't minimum payment based on balance * interest rate? Or do banks have to follow some rules that the minimum payment is always MORE THAN the interest, to stop you remaining in debt for ever?

The rules on on the page linked. The MBNA one for example says..

Min repayment: Greater of 1% of balance plus interest or £25

Just thinking about this. I have paid off 2 mortgages and started 3 in the last 12 months so am thinking my credit rating is going to be far too busy for their liking so might not be worth doing just at the moment.

[NorthWestPerm2Contr]

The rules on on the page linked. The MBNA one for example says..

Either way, I think you will all agree this is free money if done properly!

[northernladuk]

Either way, I think you will all agree this is free money if done properly!

On the face of it it would appear so, for the first 29 months at least. Christ knows what will be available in the future.

[d000hg]

So anyway, you get a loan for 1.65% for 2.5 years. If you don't need a loan, the purpose would be to make money off it, right?

Overpayment Calculator: Pay off your debt early... reckons an overpayment of £10k on my mortgage would save anywhere from £4-8k (I'd have to look up the exact term and interest rate it's on) if I didn't have to give it back I think it would reduce our payments by something like £40/month so over 29 months that's about £1190, for a profit of £760. Sticking it in an ISA doesn't seem like it would make that much.

Except of course to save £40/month, I have to pay £100/month (minimum repayment) so to make a profit of £760 over 3 years, my monthly expenditure actually goes up about £60.

Or I could take one day less holiday a year. It seems a bit convoluted for fairly small returns.. How much are you going to make - what's your plan OP?

[NorthWestPerm2Contr]

So anyway, you get a loan for 1.65% for 2.5 years. If you don't need a loan, the purpose would be to make money off it, right?

Overpayment Calculator: Pay off your debt early... reckons an overpayment of £10k on my mortgage would save anywhere from £4-8k (I'd have to look up the exact term and interest rate it's on) if I didn't have to give it back I think it would reduce our payments by something like £40/month so over 29 months that's about £1190, for a profit of £760. Sticking it in an ISA doesn't seem like it would make that much.

Except of course to save £40/month, I have to pay £100/month (minimum repayment) so to make a profit of £760 over 3 years, my monthly expenditure actually goes up about £60.

Or I could take one day less holiday a year. It seems a bit convoluted for fairly small returns.. How much are you going to make - what's your plan OP?

There are several things you can do with free money!

For example I am considering using it to take me down a bracket on LTV for my mortage which would save me significantly more than £760. Take into account the difference in interest between 3.5% and 2.5% for example....

Another option is to buy a car rather than pay the interest for finance....

[DirtyDog]

Either way, I think you will all agree this is free money if done properly!

If £400 is free, I'll have some of your money for free...