Repay Mortgage or Repay Loan?

max101

I'm currently on an interest only mortgage with the Alliance & Leicester. i took out the mortgage in Sept 08, unfortunately back then i was able to borrow more than the property value, so i borrowed an additional £25k, to pay off other debts.

i would like to start repaying as opposed to paying insterest only, however my question is would i be better starting to repay the mortgage to reduce the LTV or to repay the loan? I have checked my T&C's and i can make over payment to the mortgage.

Will A&L let me change the mortgage to repayrment?

I don't think i will ever sell the flat as it is more for future investment, but in the near future i may want to move therefore i would need to change the mortgage to a BTL, or can i have 2 residential mortgages?

2 bed Flat
Purchase Price £112,500
95% LTV £106,875
Plus Top up Loan £25,000

Any advice greatly appreciated.

Thanks

hcb42

I would think paying off the loan, assuming it has higher interest...and I would think you would need BTL mortgage, which won't be 100% so you will need two sizeable deposits as well...