Early Repayment of Endownment or Repayment Mortgage

dlb36

I've got Lifetime Tracker Mortgage with the Nationwide, of which £19k is an endownment and the other £40K is Repayment. I am currently overpaying to reduce the term of the Mortgage, but at the moment the overpayment is reducing the capital on the Repayment side and not on the endownment as the endownment is due to end in around 12 years time and the repayment about 16 years (But we have overpaid by £10k so far and making regular overpayments of £500 per month).

Should I either insist on the overpayment reducing the term of the endownment or reypayment?

:cool:I don't trust Nationwide

dunstonh

I dont know about Nationwide but normally you can choose what segment you wish to overpay. The logical one to over pay is the interest only segment.

Coveredinbees!!!!

Unless it the 2 halves have different interest rates it won't really matter I wouldn't have though. If they do have different rates over pay the half with the higher interest rate

dlb36

Thanks for the advice it seems they are taking the overpayment of the repayment mortgage, in which the rate is 2.24% for both types of mortgage.