Pay Off Mortage

A question about : Pay Off Mortage

I would like to pay off my mortage early as I have an extra Ј500 per month available. I am unsure which account to pay the Ј500 into or doesn't it really matter?

Main Mortgage - Ј15600 - 5.49% - Ends 6/2011 - current payment Ј287 pm
F Adv - 10400 - 5.89% - 3/2012 - Ј177
F Adv - 7000 - 5.49 - 10 /2011 - Ј122

The two 5.49% are fixed for 3 years

Any help would be much appreciated.

Best answers:

• Assuming there are no early repayment charges, then it would make sense to pay it off the one charging 5.89% as this is at a higher rate than the other 2 amounts.
• You are on fixed rates? If so check your terms and conditions to see if overpayment is possible and how much. Simple advice, pay as much as you can off the highest APR's first. If you are limited in how much you can pay off then, simplified again, pay off as much as you can from each account and save the rest.
  I also notice your further advances are more than your mortgage. There may be reasons for this but you should consider a remortgage as soon as penalties allow as this should work out cheaper.
  Regards
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