Hi,
I've a interest only mortgage but trying to pay off a bit of the capital each month. The interest only mortgage is in two parts and I wanted to see if I could get the benefit of the money saving expert forum to tell me which part I should be paying off! This is a selfish request but I hope someone out there can help anyway!
One part has a balance of £84k with an interest rate of 3.99%. The other part is a balance of £149k with an interest rate of 2.50%. While meeting the basic mortgage payments for each, I've been trying every few months to overpay but doing so only on the latter account....is this the right thing to be doing?
Or should I be trying to overpay on the account with the smaller balance (with the higher interest rate??)
This is a shameless call for advice and rather highlights my (financial) illiteracy and lack of numeracy but I welcome your (constructive!) views. Thank you.
I've a interest only mortgage but trying to pay off a bit of the capital each month. The interest only mortgage is in two parts and I wanted to see if I could get the benefit of the money saving expert forum to tell me which part I should be paying off! This is a selfish request but I hope someone out there can help anyway!
One part has a balance of £84k with an interest rate of 3.99%. The other part is a balance of £149k with an interest rate of 2.50%. While meeting the basic mortgage payments for each, I've been trying every few months to overpay but doing so only on the latter account....is this the right thing to be doing?
Or should I be trying to overpay on the account with the smaller balance (with the higher interest rate??)
This is a shameless call for advice and rather highlights my (financial) illiteracy and lack of numeracy but I welcome your (constructive!) views. Thank you.