Lloyds Additional Borrowing

kriss_boy

If I borrow more money from lloyds to buy a bigger property, which mortgage is paid off first?

I would have 75K borrow as a tracker, sitting 0.5% above the BoE and possibly 30K as a tracker sitting 3.5% above the BoE.

Naturally Id want to pay off the more expensive debt first or do the banks prevent this?

I could revert to interest only on the 75K and blitz the 30K right?

blueberrypie

You'd continue to make payments on the original mortgage as you do now. You would also have a monthly payment on the new mortgage.

You are right that it would be better to pay off the higher-interest debt first, and so any overpayments should be directed at that. It might or might not be possible to switch to interest-only on the 0.5% tracker - you'd have to ask the lender.

kriss_boy

The 0/5% tracker 70K mortgage is essentially interest only- we've simply chosen to overpay it to reduce it.

Im just wondering if lloyds did offer us more money would it be common practice for them to force us to overpay that mortgage as its cheapest. But I suppose I really need to speak to them. Thanks for your help.