Overpayment Question Help Required Please.

Bigadd_2

Hello there guys/gals

Quick question if i may i have jsut rang up my mortgage provider and got some figures i owe.

Part 1 56,431,05

Part 2 29,117,06

I can overpay Part 1 by 99.9% and Part 2 by only 10% per year i going to start overpaying £850 pm but what part should i overpay first or does it not matter ?

Sorry if a silly question but i wont to do it correctly.


Many thanks to those that take the time and trouble to answer.


Adam

Tesco_points_addict

Adam, are they both at the same interest rate? If not pay off the highest rate first.

TPAx

Bigadd_2

Aha yes sorry for missing that out

Part 1 5.69%

Part 2 5.59%

Cheers TPA.

dimbo61

Part 1 then will save you more interest and as its the larger part of the mortgage its best to overpay that one.
The mortgage is a repayment mortgage ?

Bigadd_2

Yes its a repayment mortgage.

RosieTiger

Got to be Part 1

Trying_to_be_good

Part 1, but if you've got LOADS of money available for paying off longer term, you might want to do the 10% each year on Part 2 as otherwise you'll have too much money (over the 10% allowed on Part 2) after Part 1 is 99.9% cleared.

Think I probably put that badly, but hopefully you know what I mean!

Bigadd_2

Ok many thanks i will when we are ready to overpay tell them to take it off Part 1.

Again thanks for all of the help.

Adam