Mortgage overpayments?

mikeopvc

Hi I'm just after a bit of advise on which sub account is best to make overpayments on?

Our mortgage is split into 3 sub accounts

1 - balance of £22,366 @ 4.95%

2 - balance of £66,137 @ 4.95%

3 - balance of £28,344 @ 1.84%

1 and 2 are Bank of Scotland Home Loan Rate and 3 is 1.34% above Bank of Scotland Base Rate.

Initially I thought it is obviously better to pay it off the higher rate accounts but then I thought what if the interest rates start to rise? Will this mean the rate on sub account 3 will start to rise a lot higher than 1 and 2?

Thanks in advance for any advice

Thrugelmir

Overpay the sub account with the highest rate of interest first. Which ever it is. If the situation changes in the future. Then simply redirect overpayments to that account. Little point in worrying about what might happen. Focus on today.

getmore4less

Check if there are any offers for moving subaccounts.

By the time rates move 3% you will have saved loads on the higher rate already.