Newbie in need of help!

elizabethbobs

Hi all

I have been inspired by all of your threads :T and would be very grateful of any advice on my new dream to be mortgage free!!

I currently have two mortgages one is £30k on repayment over 20 yrs and the other is £64k on interest only 18 yrs. Both on 3.98% fixed until Jan 2012.
I have made payments of £1830 to my interest only mortgage - My plan is to overpay approx £500-£600 a month but to which mortage would be best? Interest only I assume? Also, as it is Jan I am allowed to over pay a max of 10% this month and can afford approx £2000k would I be better paying this in a lump sum? My plan ideally would be to be mortgage free as early as possible.

Any help or advice would be great thank you

originalmiscellany

The general thought is to pay off the one with the higher interest rate, but as yours are the same, it doesn't really matter which one you pay off.

If you want, you could aim to clear the smaller one first to ensure you only have one mortgage to pay, or you could aim to get the I/O one down to the same amount.
If you pay £600 a month * 12 = 7,200 a year = cleared in about 4 years - that would be a really good challenge - to clear the 30k mortgage by say December 2015?