Overpay Nationwide BMR or tracker?

Noctu

Hi all, I'd really appreciate some thoughts into this situation!

We have 3 Nationwide products on 1 property (ported twice). They are-

1. £30k on BMR
2. £45k on BMR
3. £132k on 3 yr 2.74% tracker (6 months into it)

All 22yrs left.

We pay just over £1k/month in total and can overpay by £150.

Which one would you overpay?.... One of the BMRs to get it cleared and have the facility of underpaying or borrow back (the tracker does not have this ) or the larger tracker to clear more interest but not have the safety net of borrow back?

Am leaning towards the BMR but almost don't want to throw away the fact that we're on a mortgage with good terms....!

Would be grateful for any thoughts! :beer:

Noctu

Just a bump...

getmore4less

Overpaying the higher rate saves about £20 over the 3 years

With £150pm overpayments in 3 years a pot of around £5.6k in your BMR

Noctu

Thanks getmore4less - that pot would come in handy should we need it...

Another question (sorry!) would you opt to reduce the monthly payments when overpaying or reduce the term? I would have thought reduce the term but apparently the default position is to reduce the payments (I don't really see how that works though!)

getmore4less

reduce the monthly payment then you have the option to increase the overpayment by the reduction.

Term is irrelevent,

the total payments determine how long it takes.

Yorkie1

I overpay with NWide, and choose to reduce payments rather than term.

This means that if my circumstances change for the worse in the future, my monthly payments are lower over a longer period of time, instead of the same higher level over a shorter period of time.