Overpayments on mortgage - help

olivia2122

Hi, 

I am wanting to make overpayments or a single lump sum on our mortgage. 
We have two parts to our mortgage, as an example;

£140,000 remaining with an interest rate of 1.79% (ending June 2023)
£55,000 remaining with an interest rate of 2.94% (ending August 2024)

My question is, which part of the loan is more beneficial for me to make an overpayment on?
The one with the lowest interest rate or higher interest rate?

Thanks in advance!

MorningcoffeeIV

Always the highest rate, assuming no ERC.

But more beneficial to put the cash in a higher rate savings account.

dimbo61

We are now in Jan 23 so only 5 months till  your current fix ends.
Save into higher interest savings account till June and shop round now to see what rate you can get for the £140,000 part.
Overpay every month if  possible.
Always try and have 3/6/9 months of income in easy access savings 

gih

It it was me, I'd wait until until your 140k moves onto a new product, then overpay on that, as it will likely have an interest rate greater than 4%. 
In the meantime, I'd keep the potential overpayments in a high interest easy-access savings account, where best rates are around your higher mortgage rate anyway (2.9%). https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess