Mortgage overpayment

Sally250746

Help please! We have three mortgage accounts - one on 2.5% variable (£67k), one 2.24% fixed (£17k), one 3.19% fixed (£85k). All with 16 years remaining. We overpay by £500 every month on the 2.5% one... but is that the best one from an interest saving point of view?? Any advice gratefully received! thankyou

2_Pints

No you should pay the higher interest one (3.19%) always, here are the calcs:-

2.5% variable (£67k) = Overpaying would save you £8,651 in interest alone, and mean you pay the debt off in full 9 years & 5 months earlier.

2.24% fixed (£17k) = Overpaying would save you £2,762 in interest alone, and mean you pay the debt off in full 13 years & 7 months earlier.

3.19% fixed (£85k) = Overpaying would save you £12,998 in interest alone, and mean you pay the debt off in full 8 years & 6 months earlier.