2 Part Mortgage. Which Part Do I Make Overpayments On?? 12 May 2020 at 2:54PM in Mortgage-free wannabe 3 replies 71 views

22Kris

Hi All, 
I have a 2 part mortgage both running for the same term but with different interest rates & amounts.
Part 1  £22350 - 2.09% fixed til Jan 2023.
Part 2  £30670 - 0.39% lifetime tracker. (BOE +0.29%)
I want to make an overpayment of £100 ever month but I don't know which part to pay it off?
As I want to decrease my term in the future. 
All advice is gratefully accepted & thank you in advance.

dark^knight

In terms of saving interest, pay the one with the higher monthly interest payments.

AnotherJoe

You always pay the one with the highest mortgage rate !

22Kris

Thanks. I wasn't sure if it was best to pay it off the part with the highest interest rate or the part with the highest amount owing.