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Which is better?
Wellgood
Posts: 88 Forumite
Overpay mortgage of £116k with rate of 2.5% or £55k mortgage at 3.99%. Or both at same time? By my calculations I think it is better to pay off the £116k one as we pay more interest a year on that one. However that goes against my instinct that the other one has the higher rate. Thanks to anyone who can clarify? Sorry if this is a dumb question!
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Comments
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higher rate is better.
what calculations are showing the lower rate?0 -
Are they on the same house? If so, pay off higher rate one first. If one is BTL then don't overpay, as you can use the mortgage payments to offset against tax.Mortgage Free 20240
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