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where to pay off first with multi sub accounts?
f1wade
Posts: 13 Forumite
mortgages, I have a mortgage with 2 subaccounts,
A has a rate of 4% and a balance of 100000
B has a rate of 3% and a balance of 120000
I currently pay part and part off, so 500 goes to A and 550 goes to B.
I wondered what would be the optimum payment, and how to work it out.
so for example if I pay 1050 all to A until its paid off, then pay 1050 to B, would this save me money overall, or would it cost me money?
A has a rate of 4% and a balance of 100000
B has a rate of 3% and a balance of 120000
I currently pay part and part off, so 500 goes to A and 550 goes to B.
I wondered what would be the optimum payment, and how to work it out.
so for example if I pay 1050 all to A until its paid off, then pay 1050 to B, would this save me money overall, or would it cost me money?
0
Comments
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You won't be allowed to pay off none at all on one of them, you'll have to at least cover the interest and if it's a repayment mortgage they most likely won't allow that either.
You should pay the minimum you can on the lowest interest rate one and the max on the highest.
Unless you can remortgage both to a single mortgage? These are very high rates.0
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