Overpay on higher interest big pot or lower interest small pot?

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Would appreciate a quick bit of advice.
We have 2 Nationwide mortgage products on the same property (one was ported from old property when we moved). Both fixed for a few years.
We owe:
£120,000 @ 2.39%
£40,000 @ 2.19%
Product terms the same. Which one should I direct overpayments to?
My first inclination was to the larger pot with a higher interest rate. But would it be more beneficial to clear the £40k first so that interest simply stops accruing on that pot once it's gone?
Can't figure this one out. Advice gratefully received. Thanks :money:
We have 2 Nationwide mortgage products on the same property (one was ported from old property when we moved). Both fixed for a few years.
We owe:
£120,000 @ 2.39%
£40,000 @ 2.19%
Product terms the same. Which one should I direct overpayments to?
My first inclination was to the larger pot with a higher interest rate. But would it be more beneficial to clear the £40k first so that interest simply stops accruing on that pot once it's gone?
Can't figure this one out. Advice gratefully received. Thanks :money:
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There can sometimes be reasons to not do it that way, e.g. if you're trying to get under a LTV boundary to remortgage of if you're struggling for cash and would benefit from clearing off a smaller, lower-rate amount to free up cash flow (the latter case is more common with general consumer "dealing with debt", where there are often many loans, overdrafts, credit cards, etc., and running out of cash to pay them is often the lightbulb moment. Less common for mortgages).
However, can also be a good psychological boost to clear something off, even if not absolutely the most efficient way. As the difference is small in your case, it could be that the £40k feels like an easier target to attack
NO ! Each £100 (say) you pay off saves more interest on the higher rate loan than the smaller rate loan. Its as simple as that. Interest accrues on every pound. If you pay off the smaller loan you have more of teh higher rate one accruing more interest.
Starting with
£120,000 @ 2.39%
£40,000 @ 2.19%
you move either to
£80,000 @ 2.39%
£40,000 @ 2.19%
or
£120,000 @ 2.39% (eg ALL of it at the higher rate) it should be obvious that you'd pay less interest each year on the former.
But if it isnt ....
£80,000 @ 2.39% = 1912
£40,000 @ 2.19% = 876
total 2788
or
£120,000 @ 2.39%
total £2,868
Sure, its only £100 or so, but if it takes you (say) ten years to pay off the £40k, thats £1,000 you've lost which probably you needed to earn £1500 to pay it.