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Mortgage Overpayment Advice
sennaf11988
Posts: 18 Forumite
Hi
I have two mortgage accounts.
1) 2.5% variable - 43K remaining (£212 pm)
2) 3.19% fixed for 5 years - 166K remaining (£872pm)
The first account is on Nationwide's old BMR which was guaranteed to be no more than 2% above base rate. The second mortgage is also with Nationwide.
I am planning to overpay by up to £250 a month. I was thinking to try to cut further the remaining amount on the 43K mortgage especially as that is currently variable. But - I am not sure if that makes financial sense as I presume the effect on the larger mortgage is much bigger because more interest is being accrued daily.
So should I continue overpaying on the large mortgage or try to get rid of the smaller one while rates are still low?
Any opinions and ideas on the best strategy to take here would be greatly appreciated.
I have two mortgage accounts.
1) 2.5% variable - 43K remaining (£212 pm)
2) 3.19% fixed for 5 years - 166K remaining (£872pm)
The first account is on Nationwide's old BMR which was guaranteed to be no more than 2% above base rate. The second mortgage is also with Nationwide.
I am planning to overpay by up to £250 a month. I was thinking to try to cut further the remaining amount on the 43K mortgage especially as that is currently variable. But - I am not sure if that makes financial sense as I presume the effect on the larger mortgage is much bigger because more interest is being accrued daily.
So should I continue overpaying on the large mortgage or try to get rid of the smaller one while rates are still low?
Any opinions and ideas on the best strategy to take here would be greatly appreciated.
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