Coping with the credit crunch Your borrowing
Which? Archive
This article, Coping with the credit crunch, was last updated on 10 March 2010 and is now out of date and held in our online archive for reference. Explore our latest Money articles.
Credit card balance transfer calculator
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Example: If you were to transfer a balance of £8,000 from your existing card with an APR of 18.9%, to a card with no balance transfer fee and an APR of 16.9% on a 12 month deal and you were repaying £200 per month, then the saving would be £127 over the 12 month period.
Find out how much you could save with our handy balance transfer interest calculator
If you're paying too much interest on your credit card, find a better one with Which? Best Rate credit cards. Our handy credit card balance transfer calculator can help you find out how much you could save by switching.
Just enter the amount you owe on your credit card, the interest rate (APR) on your new and old cards and the length of time you want to calculate the savings over.
Type in how much you plan to repay each month and any balance transfer fee charged by your new credit card (this is usually around 3% of the balance you want to transfer).
The credit card balance transfer calculator will show you the potential saving you could make with your new credit card over the chosen period.
Of course, the precise amount you could save will depend on your exact spending and repayment patterns - different credit cards use different methods to work out the interest you'll pay, so this calculator should be used as a guide only. For more information on calculation methods, see the Which? guide to how credit card interest is calculated.
For further details on credit card balance transfers, read the Which? guide to switching credit cards.
Credit cards
Credit card interest rates go up
There has been an increase in the standard purchase annual percentage rate (APR) for the credit cards that meet our Best Rate criteria. The number of credit cards offering fee-free 0% balance transfers has also shrunk dramatically, with fee-free balance transfer deals all but disappearing from the credit card market.
It's more important now than ever to that suits the purpose you're getting it for. Whether it's a credit card for borrowing, or one for using abroad, earning cashback or transferring a balance to, see our Best Rate credit cards to find the best credit card for you in the current market.
Mortgages
What has the credit crunch done to the mortgage market?
The credit crunch has had a severe effect on the ways in which we used to secure finance
Mortgage holders and mortgage seekers have been feeling the full force of the credit crunch. Despite nine cuts in the Bank of England's base rate since the credit crunch hit and a drop of 4.5% since April 2008, new mortgages are difficult to find for many consumers and the property market has continued to fall in value.
Arrangement fees were increasing but have fallen in recent months. To keep track of them visit our guide to arrangement fees.
New borrowers are no longer able to obtain 100% mortgages, most no more than 90%. Lenders are offering their best rates to those who need to borrow 60% or less of their property's value.
The choice of deals has also shrunk massively, from a peak of around 9,000 to around a third of that.
Fixed and discounted deals
People on fixed-rate deals will not see their mortgage payments go up, as all mortgage providers are obliged to honour existing contracts under FSA rules about Treating Customers Fairly and Unfair Terms in Consumer Contracts Regulations. Discounted rates generally move in line with the lenders' standard variable rates, which have been falling recently. If you have a tracker mortgage your interest rate will follow the Bank of England base rate.
However, it is important to check when your current deal ends to give yourself time to shop around for a new one.
For guidance on the pros and cons of switching loans and tips on how to avoid rip-off charges, read the Money Saving Handbook by personal finance expert Tony Levene.
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