Which mortgage to pay off first

Beth_C

I have 2 mortgages (£15k at 4.75% with early repayment fee of currently about £700 and another for £80k at 3.99% with no early repayment fee). Both still have about 25 years to go. I'm in a position where I can overpay by £500 a month (no penalties incurred) then will hopefully be able to pay the full mortgages off in 6 months to a year in one lump sum. I will encur an early repayment charge on the £15k mortgage at this point. Which one am I better off making the monthly overpayment to in the mean time? Which will save me the most interest in the long run?

enjoyyourshoes

Go for the one w/o ERC
Check ERC mtge sometimes they allow 10%, then you could do both ?

getmore4less

Max out the ERC free overpayments on the higher rate.

whats the ERC for payments over this?

Any spare cash on the other.


when the time comes you have more cash then it needs a cash flow anaysis to see if the ERC is worth paying.

4.6% ERC is quite high how does that change in the future

Another option depending on cash flow is to change the terms