Overpaying NRAM mortgage -Advise please

missyb525

Hi all,

I was hoping for some advice about overpaying our NRAM mortgage please.

We are planning to begin overpaying our mortgage by £200 per month. We had the together mortgage so part of it is mortgaged and part unsecured loan. I spoke to NRAM and they said we can specify which part we would like the overpayment to come off. Ideally we would like to overpay the unsecured loan to get that down quicker but wanted to check that regardless of which part we overpay the mortgage term will still shorten.

Is it better to specify which part we want to overpay or does it not really make any difference in the long run?

I hope this makes sense and thank you in advance for your advice

BaconandEggs

Hi missy. What is the interest rate on each portion? Normally best to pay part with highest interest. If rate is low savings may new better. Are you a higher rate tax payer? If so, this any also influence your decision to op.

mrchiggles

Don't forget (lots of references elsewhere on this forum!) if you have any unsecured left and redeem the secured then the rate on the unsecured element goes really high so depending on if you think you might sell/how much equity you have/etc you might want to avert that scenario by paying the unsecured part off.