Which loan to pay off first

ASharp

Sorry I know you get these threads quite a lot but at the moment I'm in a position to roughly pay £200 maybe more extra a month on either my personal loan or my mortgage.

Just wondering what peoples opinions are here are my figures;

Sainsburys Loan:
Current Balance: £12,986
Interest Rate: 3.70%
Monthly Payment: £270.33

Mortgage:
Current Balance: £165,428
Interest Rate: 2.64%
Monthly Payment: £623.21

What would better me off in the long run?

[Deleted User]

Always target the highest rate loan to better you off.

Willing2Learn

If it were me, I would throw the extra money toward the Sainsbury loan. This is because it has the highest APR, would save you the most money and be the most MSE.

Dobbibill

what are the terms remaining on both?

ASharp

I have 33 years on the mortgage and 4 years remaining on the loan.

Dobbibill

the bigger picture if you were to overpay your mortgage would make significant savers and clear your mortgage alot earlier if you were to make overpayments every month.

Try these tools and play with the figures.

https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

https://www.themoneycalculator.com/loans/calculators/loan-overpayment-calculator/#!/dealfinder/loans/

Unfortunately it doesn't give you the option to only choose monthly payments for the length of the loan for a true comparison but they are interesting none the less.



As a compromise, you could always do both, half each

enthusiasticsaver

As you have a long term on your mortgage I am actually going to suggest £100 overpayment to each. Although the loan is a slightly higher rate than the mortgage the benefits of overpaying the mortgage are because you are borrowing over a much longer term than the loan in the long run you will pay more interest and also overpaying it may move you into a lower LTV bracket so the next time you re mortgage you may get a lower interest rate.