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Is this correct
wildwoods
Posts: 28 Forumite
A Newbie post but addicted lurker ~ please tell me if this is correct
We have just recieved our annual mortgage statement.
We have 2 mortgages with the same BS and have 11.6 years left.
50k @ 5.99 repayemtn/fixed till 2011(taken out in 2006)
52K @6.49 repayment/fixed till 2014 (taken out 2004)
However the statement shows that only the capital on the mortgage of 6.49% keeps reducing.
The BS have said it is better for us that way as we are getting the higher interest mortgage out of the way.
Is this correct, by my (very sketch)calculations over the term it will cost 2k more
We intend to make a lumpsum payment in 4 years of 50k, so surley it wuld be better to reduce the capital on both mortgages.
i cant get my head around ~Please help
We have just recieved our annual mortgage statement.
We have 2 mortgages with the same BS and have 11.6 years left.
50k @ 5.99 repayemtn/fixed till 2011(taken out in 2006)
52K @6.49 repayment/fixed till 2014 (taken out 2004)
However the statement shows that only the capital on the mortgage of 6.49% keeps reducing.
The BS have said it is better for us that way as we are getting the higher interest mortgage out of the way.
Is this correct, by my (very sketch)calculations over the term it will cost 2k more
We intend to make a lumpsum payment in 4 years of 50k, so surley it wuld be better to reduce the capital on both mortgages.
i cant get my head around ~Please help
0
Comments
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Paying off the more expensive loan first must save you money compared to splitting the repayments you make between the two loans."You were only supposed to blow the bl**dy doors off!!"0
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