Which Mortgage to Pay Off

MoneyMadness1

I have three mortgages/loans all on fixed interest deals due to renew in 3 years time:
1. £100 k, 1.49% interest rate
2. £70 k, 3.69% interest rate
3. £30k, 4.29% interest rate.

If I received a significant lump sum payment I would like to use it to pay down the mortgage debt. Would I be better off paying off the smallest mortgage in full or use it to reduce the balance on the largest mortgage knowing interest rates will likely be much higher on this debt at renewal?

Brie

Basic advice is to always pay the highest interest amount first.  But as these are mortgages is there any early redemption fees?  That will affect what you should do.

Hoenir

Is their an annual ceiling on the amount that can be overpaid i.e. 10%? 

MoneyMadness1

Thanks there are charges for over payments above 10% of the balance. I am going round in circles myself deciding whether to pay off the maximum allowed on each mortgage per year or just take the hit and clear one off. 

MoneyMadness1

Would a £10k payment to the £100k mortgage leave a balance of £90k + interest, or would overpayments be split across capital/interest amounts?

South_coast

£90k+ interest. The standard payments take care of the interest, so anything you OP comes off the capital