Overpayments on a NR Together Mortgage

booboomania

We have a 100% NR Together Mortgage, 10% of which is an unsecured loan. We have just reverted to the SVR following the end of our 3 year fixed term, and have decided to make as many overpayments as possible to try to minimise any negiative equity. We called to make an overpayment today, and NR asked whether we would like the overpayment on the mortgage, unsecured loan or a proportion of both. We opted for the overpayments to pay off the unsecured loan only - anyone have any ideas as to whether this is the best option?

Also, with the falling interest rates would it be an option to seek an alternative source for the unsecured loan with a veiw to then remortgaging away from NR, assuming we would be in a position of a healthier LTV?

Thanks in advance for any help.

Robert_Sterling_3

Which, if any, has the higher rate of interest.
That would be the one I would pay off.

booboomania

Currently exactly the same rate of interest, but if we were to switch elsewere then if I have understood correctly unsecured part of the loan switches to a very high rate of interest... which is why I am also wondering whether it would be an option to borrow the money to cover this loan elsewhere at a fixed rate.