A capital sum repayment for Interest only or Repayment loan.

Ahem

Hi folks,

I have 2 mortgage loans, same interest rate, same lender, same conditions, roughly same sums, and no charges applicable. One is an Interest only the other a Repayment type loan.

I want to make a large capital repayment and pay off part of one of the loans.

Question: Should I pay off the part of the Repayment or the Interest only Loan? Is there any financial gain or is it as I suspect, no different.

Many thanks

Andy

Robert_Sterling_3

Not enough information given

It depends on your particular terms and conditions which I do not know.

E.g. Overpayments might have ERCs.
Overpayments may be repaid to you on request etc.

Ahem

Sorry if I didnt make myself clear. No charges (ERCs) apply. T & C for both loans are the same.

I just need to know if there is any financial benefit to paying the capital sum off the repayment loan, as opposed to the interest-only loan. Or is there no difference?

Thanks Andy

Robert_Sterling_3

I see no reason to prefer one to the other in the absence of ERCs.