MFW but need a hand which way to tackle it.

Neilster

Hi all,

Currently I have a mortgage that is split into 2 parts

Part 1 is my main Mortgage
Balance is 57700 with 10 years 10 months till end.. Interest rate is 0.99% above bank base rate (currently 1.49%) 0 early redemption

part 2 is a flex mortgage
Balance is 28000 with 10 years 10 months till end.. interest is SVR (currently 4.99%) £295 early redemption

I have looked at my mortgage offer and as far as I can work out I can over pay what I like on part 2 and 10% per year on part 1

Only other debt I have is £3500 that is on a CC with 17 months @ 0% left..

I have around £400 pound a month to overpay mortgage and pay CC..

As Interest rates stand would I be best off over paying on Mortgage part 2 and minimum on CC and then worry about the remainder of the CC balance ans a 3% transfer fee at the end.. Or am I better off paying the CC £200 pound a month and £200 into the mortgage?

Thanks in advance..

Neilster

Just had a thought.. Would I be able to phone A&L and say "can you extend mortgage part 1 to 25 years" and use the money I "save" paying into that to pay into part 2? anyone done that or are they linked in anyway? account numbers are like xxx-xxxxxx-xx-01 and xxx-xxxxxx-xx-02 (i.e same numbers apart from last 2 digits)

tootallulah

All the conventional advice on here is get rid of debt by overpaying the most that you can on the debt with the highest interest rate. I would pay the minimum on the cc and throw everything I could afford at morgage 2.
It has the highest interest and you can make unlimited over payments.

But in the end it depends on your attitude to risk................will 0% offers still be around in 17 months time etc.

getmore4less

No point in tyouchin gte the base+ 0.99% you can get better by saving.
good idea to see if you can extend that term and/or go interest only.

You need a plan to pay off the CC when the 0% runs out.

What about a 0% spends card that has no BT fees.
How much on average could you add to a spends card from normal spoending food/fuel etc?

With £400pm £3700 needs 9/10 months so you have 7 months of overpayments on the higher mortgage rate.

if you spends aresay another £400pm then that needs 4-5 months to clear the CC so that 12months of overpaying.

Do a cash flow analysis working back from the date the CC needs to be paid off.