Money and Balance Transfers

The general rule is that the payment must be allocated to the o/s balance that is attracting the highest interest rate. However if they are the same, eg 0%, then it is down to the individual t&c.

It's always a risk utilising multiple promos on the same account, unless you're all over the particular t&c.

'Cider', that I can fathom, but is it reasonable and fair though? I think it's only fair - despite both being 0% - any larger payment than the normal direct debit ought to be used to pay down the earliest/soonest expiry promotion; interest incurred/applied post promotion meant an additional cost = higher interest rate. Otherwise, the provider could be deemed to encourage the user to apply for and receive a new offer with an earlier ending 0% promotion before any other.

How could this be reasonable and fair?

You may or may not know, I am a heavy stoozer so quite familiar with this. There are no rules essentially when there are two or more balances with the same rate. Barclaycard for example will apply the payment to the earliest ending promo. Whether it is reasonable or fair not to do this is moot, as it is in the lenders' discretion. Most likely it's not trickery but down to how the legacy systems are set up.

There's very little reasonable and fair about credit card companies and how they operate, so best to get rid of that concept i123 before you start..15-18% interest even when interest rates were @ 1 %...

lack of proper credit checking meaning they just pass those costs on to other customers in real terms and a limited range of choice if you actually see who owns a lot of the badged ones..

in terms of offers..as cider suggests being all over t's and c's critical and many aren't...tread carefully people..
have seen many generally money savvy people get into problems through credit cards..

Same here 'Cider'. I'd consider this as cheap money, if used correctly; I never use to spend. For instance one could use this promotion to profit with little risk by depositing money obtained into an account overseas to earn a much higher interest rate.

I've several, three with the same parent bank ie Lloyds; Lloyds owns MBNA) and Halifax too (I believe); Lloyds applied Barclays mode of business conduct so does Virginmoney; MBNA is huffing and puffing at my query citing t&c despite sharijg the same owner.

I'd like to think I'm pretty savvy when it comes to money. I've never used credit card for purchases (only debit except buying a car online for peace of mind) or withdrawing cash at a ATM. I think I'll drop an email to Mr Lewis the money-guru at Moneysupermarket. I believe this "lesser" known practice ought to be clarified and/or made clearer.

esp if you miss a payment the promo is cancelled!

I've only ever made one error, and paid a month's full interest on a balance. That was a slow stooze and just a blunder by me.

Spending is ok that's what the community calls a slow stooze. You get a 0% purchases card for say 17 months and process all day to day spending on the card (getting cashback, points etc) instead of usual debit card. Then you put the cash that would have gone on the expenses in a high interest savings account or regular saver. Not game changing profit but easy money, and no fees.

I've never missed a payment not even a direct debit on a mobile except once when my debit card was compromised and the new card info was not furnished to a mobile provider. My monthly direct debit has always been higher than the monthly minimum payment. Hence, the constant offers eg 1.9% and 2.49% - both over 24 months - from Virginmoney and Nationwide respectively; Sainsbury (0 balance) 3% over 36 months, but not lately when the bank was being sold to another outfit.

I'll update if I get a response from a colleague of Mr Lewis or the man himself.

How much day to day spending do you produce, lol.

Different but maybe related question:


Does anyone just use the 2 or 3 year fixed mortgages and then flip them at the end? I mean generally, not just covid/inflation-related. I always thought the admin and exit fees would make them a waste of time but a financial adviser is saying it's worth doing.

Indeed. I've never used credit cards to earn cashback, points, etc. I'd be a bit forgetful hence the monthly direct debits. I've never closed and opened another account to earn a fee each time; I've been with the same bank for over 4 decades. As for balance and money transfers I'm usually 2/3 months ahead on everyone.

'Porcupine...', that's way beyond me. I'd rather contemplate gambling on stocks and shares, and here. However, understanding the costs and benefits is essential; money saved = money earned (my old man used to say). And, do not forget the stress that entails; stress could influence decision-making.

I did pop

But don't have a mortgage now.

Was always a calculation to see what worked out cheaper
and sometimes there was no fee, so works well.

Like everything a bit of work required and seems
less easy to get quotes now.

Sometimes a broker will have deals too, not available
to public, so be prepared to haggle.

but a financial adviser is saying it's worth doing.

which minus his fees it's probably not...

You can do it yourself, and or if you use
a financial advisor negotiate fees and shared savings.

I had 25 year mortgage, interest only! So important to
have kept on top of it.

Early repayment and stuff like that all feeds in.
We cashed out after 23 years or so, but you dont
want to make bad choices!

not knocking the concept yhtl...I'm assuming porcu's financial advisor has given some advice beyond that in truth...

as a lay person I would have thought admin and exit fees get more competitive when the market is buoyant

Or new entrants buying up share

We got great deal off HSBC, no fees... oddly they
were useless and I had to complain.

Woman says if you are so dissatisfied why do you
want our mortgage,... Because you are so cheap says me..

Happy days

What exactly do you mean by flipping them?

To be fair, we've gone to see about a new mortgage entirely as we're thinking of moving. I'd normally sort it myself but I'm self employed with only one year's tax returns so reckon she might actually be worth checking out. But yeah, every time the missus gets excited about something I tell her the FA's obviously benefitting so take it with a pinch of salt.

But on mortgages, I've tended to prioritise the longer term and got a lower rate than the standard svr. Just wondering if it is actually worth bouncing round every couple of years or do the costs make it not really worth it.

I take a contrarian view on mortgages (may not be surprising). Most people want to clear them early, I want to keep mine running for as long as possible.

It's a punt as you can't be sure what's available in 2years time

Obviously the deal you have done determines cost of leaving

And deal you do may have up front fees and exit pens to take
into consideration

Saw some super low rates with super high fees as a catch.

But it's not difficult to workout costs.

Going with one firm for the 2 year low fixed rate, and then swapping for another 2 year fixed rate after that, so never ever tripping over to the variable rate.

Current deal likely has an expiry date and free to leave date that may not be the same date
worth checking....

But surely you can be sure that the fixed rate for a fixed period will be a bit below the best svr rate. I think that's a general rule. I've always though the admin and exit fees would negate the savings though.

Often yes, but sometimes no.

Always worth checking out if you see a good deal.



Our best deal was a punt on 0.29 under base rate when I felt rates were too high.

No fees on that either..

I see, the offers from my current lender have always been competitive so that's not something I've needed to consider. In fact that 7 year fix I mentioned before is something that I negotiated with the bank direct.

The numbers would have to be pretty persuasive for going through the rigmarole of a brand new application.

There's no excuse for being on svr unless you're moving or some other extenuating circumstance.

Svr is usually quite high, and if you have 40% equity in your property you must be able to beat that