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2 parts to mortgage
jimmyg_73
Posts: 36 Forumite
I have two parts to my mortgage I have £72k on a tracker (currently 4.75%), and £25k on a fixed rate 1.56%.
I want to make overpayments, but which is best to attack first?
I want to make overpayments, but which is best to attack first?
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Comments
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The one with the highest rate.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.1
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Need to sort of consider when you fixed rate ends. But assuming not for a while then definitely the tracker.
Also, the tracker might not have any restrictions in terms of maximum overpayments you can make (though of course check). Fixed usually do. Meaning you can potentially make a big lump sum overpayment without any fear of penalties.
Also the fixed rate is really low, while we are only expecting the base rate to continue to rise with regard to the tracker rate, immediately impacting on you interest charges.
Overall overpayment on the tracker first seems like a no-brainer.
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