Overpaying - 2 mortgage accounts

chorlton

Hi folks
we have 2 separate mortgage accounts through Nationwide. One our original mortgage with approx £30k outstanding and another for an extra loan which has about £10k outstanding. Both are on identical T&C's, we are on the standard 2% above base rate with no restrictions.
We are able to start making overpayments - is there any advantage to paying one, the other or splitting payment across both?
Thanks

Carnival789

are either of these on fixed rates? the only thing I can think of that might cause a problem, if so, is that you pay back too much too soon.

The best thing to do is give the lender a call (or email if you want to have a written record of their reply), they should be able to clarify for you.

Trying_to_be_good

Chorlton - the only difference would be the psychological advantage of paying the smaller one off and getting rid - assuming the Ts&Cs are the same on both. That'd feel great :-)

MacMickster

The only slight difference would be if your circumstances changed and you had to claim benefits.

You could receive a benefits payment re mortgage interest on the loan to buy your home. If the 2nd mortgage was used to buy a car, pay for a wedding etc then you would not receive any assistance with paying that loan, so there may be a slight theoretical advantage in paying off the 2nd loan first.