Hi all,
I am on a 5 year fixed with AIB at 2.55, 2 years remaining on it. I rang and asked about breakage fee (ERC) a few months back and was told it would be 0.
I’ve some savings built up and decided to pay off a lump sum overpayment last week and reduce the term of the mortgage. Today I received a letter from AIB which I presumed would be a similar one I received previously giving me my new term date - instead I received a letter stating that it’s not possible to reduce the term on a fixed mortgage and my repayment amount is being reduced instead and if I want to reduce the term I will have to break out of the current interest rate and apply for a new interest rate.
I’ve never heard of this, I’ve looked through some forums and i think they are wrong. Can anyone provide some advice before I ring them please.
I am on a 5 year fixed with AIB at 2.55, 2 years remaining on it. I rang and asked about breakage fee (ERC) a few months back and was told it would be 0.
I’ve some savings built up and decided to pay off a lump sum overpayment last week and reduce the term of the mortgage. Today I received a letter from AIB which I presumed would be a similar one I received previously giving me my new term date - instead I received a letter stating that it’s not possible to reduce the term on a fixed mortgage and my repayment amount is being reduced instead and if I want to reduce the term I will have to break out of the current interest rate and apply for a new interest rate.
I’ve never heard of this, I’ve looked through some forums and i think they are wrong. Can anyone provide some advice before I ring them please.