Overpayment calculator help please

moomi

Hi, I have a mortgage in 2 parts with 12 years 2 months left to run - amount owing is £60,970.
Part 1 is a tracker currently @ 1.04% for the rest of mortgage
Balance £21,387.76
Current monthly payment £157.03

Part 2 is fixed rate currently @ 3.44% until Jan 19
Balance £39,582.24
Current monthly payment £349.09

Im making overpayments around £80 a month off the larger part with the higher rate but would I be better to do an overpayment on each part? Say I had £100 to use for overpayment- would it be better to use this all towards the higher rate & bigger chunk or spilt it 80/20 for example? The reason for making the overpayments is to minimise interest I have to pay and to reduce the term overall.

Thanks for any advice you have to offer

ViolaLass

Paying of higher rate better, easily (ignoring whether overpaying at all is best)

moomi

If I was using the calculator on here to see how much I could reduce off the term, I!
!!!8216;m assuming I!!!8217;d just do the 2 separately?

Thrugelmir

Certainly worth overpaying the 3.44% part of the mortgage at the current time. Focus on the highest interest part. Reconsider your options again in the future.

moomi

The past few interest payments have been around £140 (on both parts) so if I could manage to pay that amount towards the bigger part that would make a difference, but then wouldn!!!8217;t I end up with only 1 part finished earlier?

amnblog

Given the choice why would you not overpay the element with three times the lending cost?

moomi

I have been amnblog, just wanted to check this was the best option overall and people on here are more knowledgeable about these things than myself. !!!55357;!!!56397;!!!55356;!!!57339;!!!55357;!!!56397;!!!55356;!!!57339;If the o/payments on the bigger part meant it was cleared faster, I!!!8217;d still be left with the relatively small amount over the existing period of 12 year 2 months so I was asking what would I do with that part as I!!!8217;d like it all paid off sooner ideally.

ViolaLass

Once one part is paid off you could throw more money at the other part.

Or choose not to and save the money instead since you could probably earn more interest than you're paying.

Thrugelmir

moomi wrote: »

The past few interest payments have been around £140 (on both parts)

Are you sure this is the case?

Part 1 is a tracker currently @ 1.04% for the rest of mortgage
Balance £21,387.76
Current monthly payment £157.03

As doesn't seem right on these figures.

moomi

It!!!8217;s a slight overestimate Thrugelmir, rounding up rather than down as they vary which I!!!8217;m assuming depends on length of the month
!!!55357;!!!56832;

ViolaLass

Your monthly interest on the smaller mortgage should be about £19 per month, nowhere near £140.