Overpay on mortgage - part tracker, part SVR

itsmyself

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We traded up 2 years ago. At present our mortgage is broken into 2 parts - circa 166k at a rate of 2.25% which is the amount that was outstanding on our old home which was on a tracker rate. We are with BOI so get to keep this rate for another 3 years.
We also have circa 58k on a standard variable rate of 4.5% which we are going to fix at 3% for 3 years. This will bring us up to the period where both mortgages will merge. We hope to shop around and switch then to a better rate as hopefully will have a better LTV.

My question is this, we now want to overpay by €100 per month. which portion should we overpay? When we fix the €58k can we overpay on that?
 
You should overpay the higher interest rate, unless the break charge is greater than the difference in rates. It's virtually impossible that would ever be the case for you.

BoI allow you to overpay the fixed portion by the greater of 10% of normal amount or 65 euro each month before calculating a break fee.
 
BoI allow you to overpay the fixed portion by the greater of 10% of normal amount or 65 euro each month before calculating a break fee.
Correct, but this is via a flexible payment instruction only and not random ad-hoc payments. You also need to discuss this with BOI to ensure any overpayment comes off the 3% portion to the maximum
Personally, I when you go to fix at 3%, arrange that you overpay this element by 65 euro a month and that overpayment comes off the fixed element only. Get this in writing from them.
The remaining 35 euro - save it up and make a 500 euro payment once a year. It will go against the cheaper rate but there is little you can do here I imagine. Handle that as lump sum over-payments so it is clearly distinguishable from the regular ones - just in case a dispute comes along later.

Now if you want to be practical about it - 65 euro * 12 months = 780 * 3 years = 2340 euro. Difference in interest rate is 0.75% [3%-2.25%]. That works out at 5.85 euro for each year - so in total over the 3 years its probably around 35-40 euro compounded. Does it really make a difference and would it be worth a major row with BOI on. You might be better off just paying 100 euro off the cheaper loan and keeping it simple ?
 
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