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Which mortgage to overpay?
gazbarnes
Posts: 2 Newbie
I have a house that i rent out (it wouldn't sell) with a fixed 5.89% mortgage of £100k where the current rent income covers the interest only mortgage. And a house that i live in with a tracker repayment mortgage of £72K tracking at 1.54% above base. Should i convert my interest only mortgage to repayment or overpay my tracker mortgage? or do neither and overpay my £10k loan (6.7%)
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Comments
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I think I'd overpay the loan, as the interest rate is higher than the tracker mortgage
Then I 'd overpay the residential mortgage
Then the buy to let
the advantage of having the buy to let mortgage on interest only is that the whole mortgage payment can be offset against the rent received for tax purposes.I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks, the bank say i cant make overpaymens on my loan, i can only pay the entire loan or carry on paying my normal installments so i'm gonna increase my residential mortgage paymentsI think I'd overpay the loan, as the interest rate is higher than the tracker mortgage
Then I 'd overpay the residential mortgage
Then the buy to let
the advantage of having the buy to let mortgage on interest only is that the whole mortgage payment can be offset against the rent received for tax purposes.0 -
Do over payments just come off the amount you owe or is is taken off the full amount including interest?
Sorry to hijack, just been wondering about his today
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