overpaying mortgage

mazda6

Hi am after some advise please our current mortgage is 50% repayment and 50% i/o, we want to overpay £2000 every 6 months which we are able to do with our mortgage but do I ask it to overpay repayment side or i/o? which would reduce the mortgage quicker or would it make no difference?

Rikki

I have to send a cheque to my lender to overpay the interest only side of my mortgage all other payment methods come off the repayment mortgage,
I can also overpay by more than the repayment overpay allowance on the interest only side. Worth checking out.

TBagpuss

Do you have the same interest rate on both parts of the mortgage?
If not, then overpay whichever has the higher interest rate.

Also check whether there are any restrictions about how much you can overpay, or whether overpayment mean you would be able to borrow back the over payment if you needed to.

mazda6

yes they are the same rate, we can overpay 10% per year which is well above what we intend to pay.
Thanks for replies

getmore4less

Why every 6months sooner you pay the better usually.

If well under the 10% limit it won't matter which you pay if they recalculate the payment lower you just have more to overpay.

Rikki

I have a limit on my repayment overpayments and unlimited overpayments on my interest only part of the mortgage.

Yorkie1

What other plans do you have for repaying the I/O part? If none, then I'd consider concentrating on this part, as the repayment part will look after itself all else being equal.