Clear credit card or overpay mortgage?

Mr_Fix_It

Hi all

Im in need of some help with a dilemma and would appreciate any advice on my quest to pay off the mortgage within the next 10 yrs.

Credit card balance £5500. Paying £250pcm and it’s 0% interest until 2027.

Mortgage left of £105,000. Current fixed 2.60% runs out 2027 and we then hope to agree a 9yr deal which would then fully pay off our mortgage.

Question is - should I be looking to overpay on the mortgage so that in 2027 I haven’t as much to remortgage or should I use extra funds to clear our credit card?

id love to pay off the mortgage as quickly as possible but I’ve got a credit card to chip away at.

not sure which way to do it.

Isthisforreal99

Personally I'd be clearing the credit card first as your £250pm isn't going to clear it by the end of the 0% deal......or is it? You don't say exactly when it expires but will take 22 months to clear at £250 pm.

Edit: I'd do neither at the moment. Save what you would overpay at roughly 4% as your cc is 0% and your mortgage 2.6%.

Brie

I vote for ensuring the CC is cleared before the 0% offer ends.  Chances are the remortgage will be significantly less than the high rate the CC will soar to and when you have got rid of that you can put all the spare cash at overpaying the mortgage at that point.  Make sure you find out what happens with your overpayments - do they  keep your payments the same but shorten your term or reduce your monthly payments but keep the term the same length.  The first will (I believe) be more beneficial and less fuss.

QrizB

Personally I wouldn't do either.

Make minimum payments on both.

Put your spare cash in a savings account paying ~4% and you'll be earning more in savings interest than you're paying in mortgage interest.

At the end of the 0% CC deal, see if you can roll it over to another 0% deal.