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Original poster

Stoozing and offset mortgages

9 replies

blue22 · 04/02/2011 13:27

I've just read about 'Stoozing' on another thread - someone was saying they used credit cards to save heaps of money on their offset mortgage.
I have an offset mortgage and clearly would like to save heaps of money
Can someone please explain to me exactly how you do this? Thanks so much

OP posts:

cat64 · 04/02/2011 13:39

This reply has been deleted

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Original poster

blue22 · 04/02/2011 14:06

Because the other thread was about school fees and this was a complete incidental comment and would have been a totally inappropriate hijack.

OP posts:

PuraVida · 04/02/2011 14:09

moneysavingespert has lots and lots about it (sorry i haven't a clue what it is)

potplant · 04/02/2011 14:11

I've an off set mortgage but no idea what stoozing is or how to do it. If its enough to pay for school fees though I'm off to MSE!

cat64 · 04/02/2011 14:11

This reply has been deleted

Message withdrawn

Chil1234 · 04/02/2011 14:12

Stoozing for Dummies

Martin Lewis does seem to be stressing that this is something that needs lots of discipline, care and attention or else it can end up costing you money. And with lending being tighter and interest rates on savings very poor at the moment, it might not be as lucrative as it once was, of course.

WkdSM · 04/02/2011 14:13

We did this a few years ago when the credit cards were offering 0% with no transfer fee.

First off - do not do this if you think there is any chance you will spend the money.

We opened a separate savings account linked to the mortgage account and that is where the credit card money went - so it was completely separate from our own money.

You have to be very organised and ensure you make all payments due or you will get huge fees charged.

However, most credit card companies are now only offering balance transfers (as opposed to cash draw down) and they might be 0% but only for 6 or 9 months and the 'set up fee ' is quite hefty. You really need to sit down and work out whether the charges are more than you will save on the mortgage interest.

It worked for us at the time but the offers we have had recently have not been good enough to be financiially viable.

Original poster

blue22 · 04/02/2011 14:13

That's a good idea cat I might do that - I totally agree potplant I think it sounds amazing and I'm desperate to know how it works. This person says she saved 20 grand off her mortgage and used it to pay the fees!!!!

OP posts:

Anonymousbird · 04/02/2011 14:17

Exactly what WkdSM said - it's not really that cost effective now, and you need to be utterly disciplined and completely organised as there are lots of traps for the unwary.

We no longer do this for precisely the reasons WkdSM describes.

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