TSB Repayment mortgage sub accounts - overpaying

seattle21

Hello,

I’ve checked to see if there are answers to my question on previous posts but I can’t see exactly what I’m looking for...so apologies if I’m duplicating.

Currently have a repayment mortgage with a balance of £123,000 and remaining term of 19 yrs.

Mortgage is made up of four sub accounts:

Accnt A – Balance of £75,000 on a 2.09% rate until 2023

Accnt B – Balance of £32,000 on a 2.09% rate until 2023

Accnt C – Balance of £16,000 on a 3.45% rate until 2023

Accnt D – Balance of £600 on a 2.09% rate until 2023

I have been overpaying £200 a month for the last twelve month and this has been spread over the whole account. I'm planning on paying off account D next month but the question is, once that's cleared, would it make more sense for me to overpay on account C and get the higher rate paid down faster, (making sure I don’t go over the overpayment allowance)? Our aim is to get the whole mortgage paid off as fast as possible.

 

Any thoughts would be gratefully received.

 

Thanks so much.

Thrugelmir

Always advisable to clear the highest rate of interest first where ever possible.