Starting to overpay- again!!

v.rajput

Hi,

I have now moved house and am again starting to overpay on my mortgage to shorten the term.

The trouble is this time majority of my 30yrs mortage is on a .89 above base rate and the rest is on a 3yr fixed and 4.79 i think.

So i told the bank that pls begin to pay off the fixed rate part: Im not sure if ive done the right thing.

Any ideas?

Vj

Jonbvn

v.rajput wrote: »

Hi,

The trouble is this time majority of my 30yrs mortage is on a .89 above base rate and the rest is on a 3yr fixed and 4.79 i think.

So i told the bank that pls begin to pay off the fixed rate part: Im not sure if ive done the right thing.
Vj

Always pay-off the highest interest debt first, which in your case is the fixed rate mortgage. However, please be aware of early repayment charges - check with your lender.

Given the current low rate of your other 1.39% mortgage, I would suggest that you do not overpay it at the moment, concentrate on the fixed rate mortgage and after that save.

v.rajput

Just an update I'm about to pay off my additional borrowing. And as long as no hiccups I will be mf in 5yrs.

tootallulah

What brilliant progress, well done.

v.rajput

I'm done, I've got about a years mortgage outstanding... Im now gonna stop overpaying........ Mmm the idea of borrowing for an extension looks good... Lol