Overpaying on loans

tom052

Hi, i have 2 identical loans over the same term and at the same rate. One is for £80k and the other is for £30k.
They were taken out at the same time.
Is there any benefit in overpaying on a particular one or is there no advantage gained, can the overpayment be split equally?

MorningcoffeeIV

It'll make no difference (assuming any early repayment fees are the same).

tom052

No early repayment fees on both

Will_Riker

Agreed - if the APR is the same and there are no penalties for overpayment, then it makes no difference from a purely financial point of view.

There is an argument to say you might want to - in these circumstances - overpay the smaller loan.  Purely because there is a psychological "feel-good" factor when you finally clear a debt completely.  But in terms of cold hard cash, it makes no difference at all.