which mortgage to reduce

O

oaky9

Registered User
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i have two mortgages one for 48k on variable rate at 5.94% and other for 300k fixed for 1 year at i think 4.8% and the year is up next month, i have cash of 30k and want to know which mortgage to take it off. would it make more sense to take it off the larger mortgage.
 
What are these mortgages on? PPR? Investment property (properties) (well - presumably at least one is on an investment property)? In relation to investment property mortgages this thread might be of use:

Interest only mortgage for investment property

Regardless of that, in this specific case since there would presumably be penalties for paying a sum off the fixed mortgage that is probably not the one to tackle until the fixed rate is up and no penalties apply.
 
thanks clubman the 48k is an investment property and the 300k is a PPR.
 
I would think pay it off your PPR as you can write off the interest against rental income on your investment.

Don't forget the lower your LTV is on your PPR the better rate you will get. Maby save the €30K wherever you can get the best rate until next month when your fixed rate is up, then pay the €30K off your PPR and negotiate the best deal you can then get for your LTV.
 
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