Lump Sum Of Mortgage - Please Advise

bigal993

Hi Guyz
I curently have 9 years left on my mortgage, Im just out of my fixed deal with YBS. so Im on there SVR at the moment.
I currnetly have £100,000 left which is split half capital half interest only.
I have just cashed in two terrible endownments, I have caluclated worst case scenarion I will have about £24,000 out of the other endownments when they finish.
What I was wondering is - Do I pay the £25,000 off the capitol or the interest only part of the mortgage.
I am looking to overpay as well once i have done this by about £200 per month if I pay this off the interest only part, but more if its off the captiol

Al

Robert_Sterling_3

Pay £25,000 off the interest only part.

Peelerfart

Or alternatively, paying it off the capital part and keeping the payments the same + the anticipated overpay, would give you the flexibility to pay less should you need to for whatever reason (redundancy for example).

You would need to bear in mind that you have nothing in place to repay the IO part of your mortgage.

bigal993

Thats what i was thinking m8, to keep the payments the same, i was wondering if it would pay itself off any quicker, including the IO part
Al