lump some money advice

mondeoglx

could someone help have £25000 LUMP SOME TO PAY OFF mortgageWHATS THE BEST ADVICE PLEAsE HAVE 2 PARTS OF MORGATE
1 £35000 repayment 16yrs left intrest rate 3.99
2 £46000 repayment 16yrs left intrest rate 3.99
been in touch with building socity
if i pay of part of no 1 i would be £155 beter off per mth
if i pay of part of no 2 i would be £92 better off per mth
no 2 does have have an endownment which matures in 2yrs
any advice please

redpete

mondeoglx wrote: »

could someone help have £25000 LUMP SOME TO PAY OFF mortgageWHATS THE BEST ADVICE PLEAsE HAVE 2 PARTS OF MORGATE
1 £35000 repayment 16yrs left intrest rate 3.99
2 £46000 repayment 16yrs left intrest rate 3.99
been in touch with building socity
if i pay of part of no 1 i would be £155 beter off per mth
if i pay of part of no 2 i would be £92 better off per mth
no 2 does have have an endownment which matures in 2yrs
any advice please

1. It's a lump sum

2. Did the lender explain why paying the same amount off of two mortgages with the same interest rate results in you saving different amounts of money?

3. Normally I'd say pay it off the one with the higher interest rate, but you say they are both the same.

4. If the amount you say you will save each month is correct then pay it off the first one but double check the figures because they don't make sense to me. I don't think the endowment makes any difference, you'll get the same money from it when it matures.

Thrugelmir

redpete wrote: »

2. Did the lender explain why paying the same amount off of two mortgages with the same interest rate results in you saving different amounts of money?

Something most certainly doesn't add up.

mondeoglx

sorry the 2nd morgage is is intrest only

Thrugelmir

Then I would choose no 2 mortgage.

Use the savings made to invest elsewhere or increase your no 1 mortgage.