Hi all,
I have a loan with sub-accounts at different rates (a portion at 3% and a portion at 4.5%). When I make repayments should the loan with higher interest be reduced first and is there any regulation around this?
Currently the sub-account with lower interest is being reduced first by my bank and this ends up costing me more over the life of the loan (40 year mortgage).
Regards, PJ
I have a loan with sub-accounts at different rates (a portion at 3% and a portion at 4.5%). When I make repayments should the loan with higher interest be reduced first and is there any regulation around this?
Currently the sub-account with lower interest is being reduced first by my bank and this ends up costing me more over the life of the loan (40 year mortgage).
Regards, PJ