Repayment or Interest only overpayment

Which_way

Hi I am a newbie so apologies if this is posted in wrong place!
I have a 76k mortgage with 13 years to run. It is approx 38k repayment and 38k interest only.
The interest rate on both parts of the mortgage is the same, is low and is fixed for the full term
I will shortly be in a position to overpay a lump sum of approx £20k.
Which part of the mortgage do I overpay on to reduce my debt the quickest, or the most.
Hope you money saving experts can help me...in plain English plaese

getmore4less

makes no difference as long as you keep you normal payment at the same level.

is there any penalty for paying £20k.

Thrugelmir

How do you intend to repay the interest only part?

Which_way

I'm pretty sure there isn't, but will check that first. Thanks.

Which_way

Following the lump sum payment, am also able to start overpaying an amount per month. Is it the best use of a monthly overpayment to start to pay off the capital on the interest only mortgage? In addition, I have a savings plan too that could be used ( if required) to pay off the remaining interest only loan at end of term. That's why I am wondering about whether to reduce the interest free loan early on?

getmore4less

it makes no difference in cost which you pick to overpay.

The advantage of overpaying the repayment part is it reduces your contractual payment the most.

I would check your term and rate for any penalties.

is it really fixed or a tracker something like base + 2%...

Which_way

getmore4less wrote: »

it makes no difference in cost which you pick to overpay.

The advantage of overpaying the repayment part is it reduces your contractual payment the most.

I would check your term and rate for any penalties.

is it really fixed or a tracker something like base + 2%...

It is base +2%

dimbo61

You need to look at the whole picture.
Do you have a pension ?
Do you have emergency savings ?
Can you earn more than 2.5% in say a regular saver each month.
Many fixed rate deals do have ERC penalties if you pay more than 10 or 20% in one year.
If you are on the SVR then maybe use half the £20,000 to overpay the IO part of the mortgage and keep the rest in savings for emergencies.