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Which option is best
Wellgood
Posts: 88 Forumite
I have 2 mortgages on same house. 1. £116k at 2.5% and monthly payment of £508.92 and 2. £55k at 3.99%. and monthly payment of £283.17.
If I have £200 to overpay a month. Is it better to put that all into the 55k mortgage at 3.99% and then when that is paid off put the £283.17 + 200 = £483.17 into overpaying the £116k mortgage.
OR is it better to overpay both from today - e.g. £65/mth on the 55k one and £135/mth on the 116k mortgage
OR any other split?
If you can work out the answer can you tell me how much better off I would be doing it which way and how many years saved compared to my options
I know most people say pay off the higher rate , but the higher rate is on a smaller amount , this is what is confusing me! Thanks
If I have £200 to overpay a month. Is it better to put that all into the 55k mortgage at 3.99% and then when that is paid off put the £283.17 + 200 = £483.17 into overpaying the £116k mortgage.
OR is it better to overpay both from today - e.g. £65/mth on the 55k one and £135/mth on the 116k mortgage
OR any other split?
If you can work out the answer can you tell me how much better off I would be doing it which way and how many years saved compared to my options
I know most people say pay off the higher rate , but the higher rate is on a smaller amount , this is what is confusing me! Thanks
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