How 2 repay 2 mortgages with different rates

Janewsmith

Had a revelation today that seems so obvious I can't believe I haven't thought of it before....want to check I haven't missed something before I go ahead. You've all probably been doing this already! We have 2 base-rate tracker mortgages. One for approximately £120,000 @ 0.99% above base rate and one for approximately £80,000 @ 4.29% above base rate. We are making capital repayments on both. They are both the same product with no overpayment fees. Should I switch the lower rate mortgage to interest-only repayments and use the savings to overpay on the higher rate mortgage? We do it for credit cards (pay off the highest interest rate first) for obvious reasons so I can't think why this wouldn't work for my mortgage....

Yorkie1

I suspect you may find it difficult to switch either to IO; lenders don't really go for this.

Just instruct the lender to put all repayments towards the more expensive sub-account rather than the lower interest rate part.