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2 Part Mortgage. Which Part Do I Make Overpayments On??

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2 Part Mortgage. Which Part Do I Make Overpayments On??

3 replies 72 views
22Kris22Kris Forumite
2 posts
First Post
MoneySaving Newbie
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.

Replies

  • dark^knightdark^knight Forumite
    495 posts
    Tenth Anniversary 100 Posts Photogenic
    ✭✭
    In terms of saving interest, pay the one with the higher monthly interest payments.
    Almost there... aiming to be mortgage free in May 2020. B)
  • AnotherJoeAnotherJoe Forumite
    17.2K posts
    10,000 Posts Fourth Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    You always pay the one with the highest mortgage rate !
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
  • 22Kris22Kris Forumite
    2 posts
    First Post
    MoneySaving Newbie
    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.
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