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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4550
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I have just payed a lump sum off my interest only part of the

Customer Question

I have just payed a lump sum off my interest only part of the mortgage. I still have £20500 left as interest only. I also have £16800 as a repayment mortgage left. I am planning on paying £90 overpayment a month for the rest of the mortgage term which ends in April 2016
The endowment I have will cover the £20500 left on the interest only part of the mortgage when it matures in April 2016 the same time as the repayment.

What would be the best part of the mortgage to pay the £90 overpayment from the Interest only part or the Repayment part?
Submitted: 4 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 4 years ago.
Dear Friend,

Hello and welcome and thank you for using Just Answer.

The answer would be straight. Use over payments on you Interest Only mortgage, which will directly and certainly reduce your capital outstanding. It is always beneficial to make over payments on interest only mortgages first.

I am more than sure this would help.

You may leave a positive rating if this helps. Alternatively, please feel absolutely free to refer with further queries and I shall be more than happy to keep assisting you.

Warm Regards......