Paying Lump sum off mortgage

gunny_2

I have A Mortgage which is part repayment and part interest only. It is a fixed rate and I am tied in for about another 18 months. I wish to pay a lump sum off this mortgage and up my monthly repayments. I can do this without incuring any charges.
What would be the best option for me?

A, to pay the money on the interest only part
B, to pay the money on the repayment part.

Also I am planning to convert this mortgage to all repayment when I next review it.

KTF

I would pay it off the repayment part because the interest amount will also go down as a result. The increased interest payment will then go further.

It will also mean that when you convert to a repayment the overall mortgage will be less and the monthly payment will also be less as a result.

Just paying off the interest will not make a dent to the outstanding amount.

kennyboy66_2

It should not really matter however

Is there any penalty for making overpayments ? Some fixed rates allow you to make some overpayments without penalty.
When you overpay, does the interest charged immediatly reflect the overpayment ?

It could be that you are better putting cash into an ISA (using partners allowance as well if applicable) & making the overpayment in 18 months time.