Overpay mortgage or personal loan?

ViolaLass

PeacefulWaters wrote: »

Although if you overpay the more expensive loan and, when it's repaid then allocate the whole loan payment, including overpayment, to the mortgage you'll be better off overall.

No, because the mortgage has the higher rate.

PeacefulWaters

ViolaLass wrote: »

No, because the mortgage has the higher rate.

Of course it does. I'd even pointed that out myself earlier.

As you were.

Herzlos

Mortgage. At 31 years left (presumably 9 years into a 40 year), you're probably paying at least 1.5x interest on your money over the lifetime (i.e. you overpay by £1, you'll save about £1.50 in interest, or are £2.50 closer to paying it off). If you can bring it down enough you may be able to drop down an LTV band and get a better rate on your next renewal, too.


If you were within about a year of paying off the loan I'd have suggested that first - because then you'll free up the loan payment which you can put onto the mortgage.