Overpaying 17 November 2022 at 12:37PM in Mortgages & endowments 1 reply 214 views

pollyanna24

Is the quick answer to always overpay on the mortgage with the highest interest rate?  Or if there are differing amounts owing, should the higher amount be overpaid?

I have two mortgages (on the same property (yawn)):-

£40,000 at 5%
£70,000 at 3.14%

The first one is variable (2% above base rate) and the plan was to keep throwing money at it due to interest rate rises.  But does there come a point when I would be better paying off the bigger mortgage?

MFWannabe

Not until you have paid it off or can get a better rate 🤷‍♀️