Which morgage to pay off?

unofon

I have two small morgages one for £15,000 on a fixed repayment and one £15,000 on interest only.I can pay one off but which one?
One costs £143 a month other £30

getmore4less

Not enough information


What are the interest rates?

What are the terms?

what are the charges to pay them off?

What do you have in place to pay off the I/O at end of term?

unofon

Hi
Term was for 11 yrs on a tracker 1.89% above base rate with 9 yrs to go.I have enough fund to pay it all off but locked in for another 14 months and a penalty of £350 to exit

getmore4less

Base + 1.89, have a good look round for saving that pay at least this after tax.

Since they ar eboth the same term and rate I would overpay the repayment gives more flexability in the future.

Interest only are hard to get now, if you keep the interest only you can reduce paymnts if income drops , just make sure you keep a plan to have the full amount paid of or in savings in 9 years.