Overpayment Advice..

BeverleyN

Hi,

If possible could the more mathematically & financial savy offer a little advice.

Myself and husband currently have 2 mortgages over 23 years.

1 is for £162,000 with a rate of 3.59% on repayment
The other is for £70,000 with a SVR of 5.39% on interest only

Combined they come to a little over £1350 monthly.

My husband works away and the contract he is on will last for the next
26 months. We will for this period be able to make overpayments of
£3500 monthly. Taking the total to around £4850 monthly for the next
2 years.

So, the question is, would we be better concentration on the interest only
or repayment. Or paying half and half from each one.

Or we have the option of changing the interest only to repayment or vice versa.
There are no penalties on our products for any overpayments.

Thank you in advance..

B

Thrugelmir

Is one of the properties a BTL?

getmore4less

Is the £135k fixed? for how long? what is the follow on rate?

BeverleyN

Sorry i didnt explain more...

The mortgages are on the same property.
The second one was taken to raise some cash for
another project 3 years ago.

Its a variable rate on £162,000 it will go to 5.39% SVR
in 18 months time.

Hope that helps

getmore4less

BeverleyN wrote: »

Sorry i didnt explain more...

The mortgages are on the same property.
The second one was taken to raise some cash for
another project 3 years ago.

Its a variable rate on £162,000 it will go to 5.39% SVR
in 18 months time.

Hope that helps

Go interest only on the £162k at the low rate
Overpay the high rate as much as you can

£60000/£3500 is 17 months so that will be paid off while you can still overpay so then hit the other mortgage