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2 mortgages which one to over pay?
I currently have 2 separate mortgage accounts on the same property, one is owing £82000 and the other is £50000. They are both with the same company and I make 1 monthly payment. My question would be if I was to overpay would I be best to pay off the lower or higher amount or split equally between the 2?
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I would say it depends on the interest rate. Is one higher than the other?
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Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
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One debt remaining. Home improvement loan.[/b] [11 months left.[/b]1 -
They are both at the same interest rate, essentially 1 mortgage but split into 2 separate accounts when I remortgaged a few years ago.
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I would (and did when I was in a similar position) pay off the smaller mortgage. It’s psychologically good to only have one mortgage to pay.
2017 - mortgage of £140,000 and interest rate of £10 a day
Feb 2021 £103000
November 2021 £93000
December 2022 £79000
December 2023 £73000
March 2024 £70000
May 2024 £68000
October 2024 £65000
February 2025 £63000
March 2025 £45000, interest of £6.07 per day
November 2025 £41000, interest of £5.62 per day
March 2026 £38000, interest of £5.22 per day
July 2026 mortgage of £34,000 and interest of £4.97 per day1
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