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Guide

How to think about paying off multiple mortgages

Cómo pensar el pago de varias hipotecas

A short guide to overpayments, redirected payments and a few example scenarios.

What this calculator does

This calculator compares two simple approaches:

Keep each mortgage separate

Send extra money to the highest-interest mortgage first

When one mortgage finishes, its monthly payment can roll over to the remaining mortgage, accelerating the payoff.

The graph and year-by-year table show exactly how this plays out over time.

A simple real-life example

🏢 Anna and Ben each own a flat

💍 When they move in together, they now have two mortgages but only one home to pay for.

They could sell the second flat. If they do, there is no need for a multiple mortgage calculator.

But if they keep the second property and rent it out, their finances change. Two incomes to support one household, plus rent from the other property. That can create spare cash for mortgage overpayments.

At that point they have a choice:

• Keep both mortgages separate

• Treat the debts as one plan and send extra money where it saves the most interest

This calculator helps compare those options.

Why “highest interest first” is the default benchmark

Extra payments reduce more interest when they go toward the highest interest rate.

For example:

Mortgage A: £250,000 at 3.1%, 13 years 8 months remaining, £500 monthly overpayment

Mortgage B: £165,000 at 5.9%, 25 years remaining, no overpayment

If the £500 goes to the 5.9% mortgage first, the combined debt finishes about 11 years 11 months earlier and saves roughly £67,400 in interest compared with keeping the mortgages separate.

Open the different-rates example to see this in the graph and table.

A rollover example

Sometimes there are no overpayments at all because budgets are tight.

Even then, combining the strategy can help.

When one mortgage finishes, its normal monthly payment rolls over to the other mortgage.

In the example scenario, that rollover alone saves about 9 years and £31,600 compared with treating the mortgages completely separately.

Open the rollover example to see when the payoff speed changes.

What counts as “extra payments”

In this calculator, extra payments include:

Monthly overpayments you enter

Payments redirected after one mortgage finishes

The normal monthly payment from the finished mortgage (if rollover is enabled)

What the effective rate means

The effective rate shows the return your extra payments achieved.

For example, if the effective rate is 5.9%, your overpayments saved interest roughly equivalent to earning 5.9% on that money.

If you can reliably earn more than that elsewhere, for example through investments, you might prefer to do that instead.

What this tool does not cover

This calculator does not include:

Lender overpayment limits or fees

Taxes

Property price changes

Changing interest rates

Rental risks or vacancy

It also does not settle the classic “overpay the mortgage vs invest instead” debate. That depends on risk tolerance, taxes, and personal goals.

This tool has a narrower purpose: to model multiple mortgages properly, which is difficult with calculators designed for a single loan.

Planning model only. For illustration, not financial advice.