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Which Mortgage to Overpay First?
theonlyoneiknow
Posts: 19 Forumite
Hi,
I have two mortgages on my house. One which I ported over when we moved, and then a second which we took out to 'top up' the amount needed for the house purchase (called a further advance mortage).
The original mortgage is £88k and on Nationwide's 2.5% BMR, the second is £93K and on a 2.89% fix (after this going to their SVR unless we take out a new product).
I am thinking of overpaying £200 a month into my mortgage rather than saving it. Am a bit confused though as to which mortgage I should pay off first? Or should I pay £100 into each one? I can overpay any amount on the first mortage without penalty, but a maximum of £500 on the second one.
Thanks for any advice
Pie
I have two mortgages on my house. One which I ported over when we moved, and then a second which we took out to 'top up' the amount needed for the house purchase (called a further advance mortage).
The original mortgage is £88k and on Nationwide's 2.5% BMR, the second is £93K and on a 2.89% fix (after this going to their SVR unless we take out a new product).
I am thinking of overpaying £200 a month into my mortgage rather than saving it. Am a bit confused though as to which mortgage I should pay off first? Or should I pay £100 into each one? I can overpay any amount on the first mortage without penalty, but a maximum of £500 on the second one.
Thanks for any advice
Pie
0
Comments
-
pay the one with highest rates, so the second one. Is the £500 maximum per month or annually?0
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Are you already making full use of Regular Savers and other high interest accounts? They would get you more than overpaying would save.0
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