mortgage repayments

needtopaymydebts

Hi,
this might be a really stupid question but i'm hoping that you will be nice to me! Now myself and my husband have made some fairly dodgy financial decisions in the past which i'd rather not dwell on but we're getting back on track with things now and as of next month we'll have paid off everything we owe other than the mortgage. However, the mortgage ..due to said bad decisions...is made of of 3 parts, mortgage, secured loan and unsecured loan.

We have always made regular overpayments to the mortgage company and once everything else is paid we intend to increase these payments further. My main question is, do we just make a lump overpayment or can we select to overpay a particular part of the mortgage and would there actually be any point in repaying one bit before another if it is possible?

Thanks for reading!

TotallyBroke

I think the first thing you need to work out is if all three parts are on the same interest rate. If they are then I suggest you over pay on the larger amount.
If they are not then you need to concentrate on clearing the one with the highest interest.

Have a look at https://www.whatsthecost.com/snowballing.html that will give you an idea of how much you can save moneywise.

needtopaymydebts

Hi again,

yeah the interest rate on each part is exactly the same and after 1st Oct there won't be any early repayment fees for any part of it either.