Should we pay extra on main mortgage or pay full top up mortgage?

I

Ireland.1

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We have a top up mortgage on our home which we could not afford to pay last year. I am about to start a new job in January that allows us to now pay the top up mortgage in full each month.

We are currently paying capital only on our main mortgage and nothing on our top up loan.

My question is should we continue:

a) to pay the capital only plus some on our main mortgage

b) continue to pay the capital only on main mortgage and the full amount on our top up loan each month

Thanks,

Ireland.1
 
If the interest rate is the same, it should not matter too much.

Check your statement(s). Do you get separate statements?

If one of them shows arrears, pay off the arrears first.

Brendan
 
Yes we receive seperate statements, both with varying interest rates and both accounts are in arrears.
 
Do you mean you are paying interest only on the main loan? All things being equal I would pay the most off the highest interest rate one.
 
How much in arrears are you? Can you clear them over, say, 6 months?

If so, you should aim to do so.

If you can't clear them in 6 months, then talk to the lender. Tell them your new circumstance and ask them to capitalise the arrears as you can now afford to pay more.


Brendan
 
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