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Overpayments on ported mortgages (2 accounts)
icclesuzie
Posts: 35 Forumite
Hi,
I'm looking for a bit of advice.
When i moved house, I ported my old mortgage over and also increased lending. This means I effectively now have two mortgages for the same property.
My financial circumstances have now changed and i'm in a position to overpay around £300 a month.
My question is, would it be better to overpay one account, or split the money and overpay £150 to each account?
The approximate money left to pay and interest rates are below. there would be no penalty to overpay either or both with the small amounts i'm talking about:
Account 1: £75,000 at 2.19%
Account 2: £45,000 at 2.94%
I was going to overpay it all on account 2, but I can't decide if splitting it is better?
Any thoughts would be appreciated!
I'm looking for a bit of advice.
When i moved house, I ported my old mortgage over and also increased lending. This means I effectively now have two mortgages for the same property.
My financial circumstances have now changed and i'm in a position to overpay around £300 a month.
My question is, would it be better to overpay one account, or split the money and overpay £150 to each account?
The approximate money left to pay and interest rates are below. there would be no penalty to overpay either or both with the small amounts i'm talking about:
Account 1: £75,000 at 2.19%
Account 2: £45,000 at 2.94%
I was going to overpay it all on account 2, but I can't decide if splitting it is better?
Any thoughts would be appreciated!
0
Comments
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Overpay the highest rated sub-account.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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I'm in a similar position with two mortgages on the one property.
One is 2.75% (tracker mortgage) and the other 2.34% (fixed until 2021). I overpay the tracker mortgage when I can and the other one is just plodding along until the tracker one has gone and then I can focus on that one!Pink Sproglettes born 2008 and 2010
Mortgages (End 2017) - £180,235.03
(End 2021) - £131,215.25 DID IT!!!
(End 2022) - Target £116,213.810 -
The higher rate is the default option.
There are times when that may not be financially the best option depending on terms and upcoming rate changes and what rates will be available.0 -
Thanks everyone that’s really helpful!0
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