Which mortgage should I overpay on

feathers1981

We have two mortgages on our house and they are both on the same term.

One mortgage is £157k and on 3.49% and one is 91K and on 2.99%. We can afford to monthly overpayments of £600 and will also be able to make the odd additional overpayment. The Nationwide allows us to make monthly overpayments of £500 on each mortgage (so total £1000 a month) without penalty.

Should we just pay £300 off each or is there some benefit to paying £500 off one and £100 off the other?

getmore4less

The usual advice is pay overpay the one with the higher interest.

howerver if the rates will change in the future there may be a better option.

eg if the 2.99 one will go to a higher rate soon(like come off a fix) and cannot be put on a lower rate it may be better paying that one
OR
if the higher rate will change and therre is a deal that pays better than 2.99 it may be better paying the 2.99 one.

currently every £1k extra paid off the higher rate saves an extra £4pm on interest so after a year geting it right could be saving £50pm more so worth looking at it carefully.

TO work it out would need more details of the mortgages
THose rates look high for NW do you have a very high LTV if some overpayments will reduce it that could swing it towards the deal part that finishes its fix second