I currently have 2 mortgages:
One fixed at 4.79% which is going to change from November to 5.98%, I can make an overpayment of whatever amount I wish before my new deal starts in November
My second is a variable at 6.24%.
Which of the following would be the best option for my financially.
* Invest £3k in a 6.30% AER National Savings Direct ISA
* Pay £3k on my first mortgage before November which will reduce the length of my mortgage further before the new deal kicks in.
* Pay £3k into my 2nd mortgage which is at the higher rate of 6.24%
I already have an isa in place but my partner doesn't so I was going to put the money into their Isa if I selected that option.
My maths is average but I suspect the 2nd option would be best, any advice on the above would be appreciated? As I have been told that the 3rd option would be best as you should always pay off your highest interest rate debts first?