Overpayment question

Hello, sorry if this has an obvious answer but I’m flummoxed. I have 2 parts to my mortgage: original part (house purchase) on a low variable interest rate and a smaller 2nd part (for house extension) on a higher rate, currently on a 5 year fix. I want to get this smaller part paid off within the 5 year fixed rate, and am making a monthly overpayment accordingly. My bank holds this in an overpayment fund which reduces the interest I pay overall (over both mortgage parts), and I have to request if I want the money to be committed to either mortgage part (and say which). Am I best doing this, say annually? Would I get greater benefit as all the money is then going towards the higher rate mortgage?

thanks for any help! Scared of messing up and having to remortgage again when I really should be able to get it paid off.


  • FatJock
    FatJock Posts: 196 Forumite
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    Hi 'Gemmaj - I've been advised to put the money off the higher rate mortgage as this would save you money in the longer term. However, my situation is slightly different as I have a BTL and a personal mortgage but like you I am flummoxed as to what to do.
    Good luck.
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