overpaying when one has multiple loan parts

Tarama

Hi

I wish to overpay mortgage - owe £45500 and can overpay 10%, which I have to do before the end of December. This is spilt into 4 loan parts -

4900
26100
13700
751

What I am trying to work out is, does it matter in financial terms, which of these loans to pay to? Are any better to pay to than others or is it more economical to pay a sum off them all?

I would appreciate any thoughts on this.

Thank you Tarama

[Deleted User]

Everything else being equal, paying the highest rate part will save you the most.

Tarama

Dear ZX81

thanks for the prompt reply - so yes all else is equal - with a mortgage rate of 2.99% fixed until next year. So paying the 10% of £4550, off the £26,000 loan part is the most economical?

Tarama

[Deleted User]

If the rates are the same, it makes no difference.

Tarama

Deleted_User wrote: »

If the rates are the same, it makes no difference.

Ah of course - I misunderstood your first reply. I get it now.

Thanks

Thrugelmir

Might as well clear the £751.

red_flump

Doesn't each part have its own 10% repayment limit before ERC kicks in? so clearing the £751 would incur a penalty on the £751

Tarama

Hi

Thrugelmir - yes I think clearing the smallest loan would be a good idea.

I can overpay by 10% and I can decide what loans and amounts I overpay.

So my original question was what is best to do here? There appears to be no financial benefit as all loans are on a FR of 2.99%.

best wishes Tarama