Which mortgage to overpay on

djjd

In the new year we are going to be able to overpay our mortgage by £500 a month. We have four mortgages with nationwide. One is 146k, one is 63k, one is 14k and one is 12k. All end in 17 years and all are repayment. All are fixed for four years at 5.44% apart from the 63k one which is 4.19%. What I am unsure about is which one to regularly overpay? Do I stick to the smallest and get that paid off or do I go for the biggest to reduce more interest quicker? Or does it make no difference in which case I will share the overpayments around. Any advice most welcome.

redbull5

the lowest one , 17 years to pay off 12k..... if you overpay that one it will be gone in less than 2

financialbliss

Pipped at the post by redbull5. Was going to say mine, but personally, I've overpay the smallest mortgage to get a quick win.

With Nationwide, you may be able to overpay up to £500 on each mortgage account, but this obviously will depend on your disposable income. May be worth checking though.

FB.

djjd

Great stuff. Obvious I guess when you think about it but great to have it clarified. Will check with nwide as well. Cheers

getmore4less

What are the followon rates of each bit?

lulabelle1

Good point getmore4less..... if each of them revert to the same follow on rate then just get rid of the smallest first. But, if some refer to the SVR (3.99%) and some revert to the BMR (2.5%), then get rid of those reverting to the SVR first.
You can definitely repay £500 each per month with Nationwide fixed accounts, so if you have a windfall this gives you lots of flexibility since you have so many diff mortgage accounts.

Good luck, L