Mortgage changes question

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reds

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I have a U-First tracker mortgage and now that Mr Reds is moving in I would like to start paying more off the mortgage every month. Will I be penalised for doing this?
As this is a tracker, how do I work it out with the bank? Do we just agree on a set percentage or amount?
 
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reds said:
I have a U-First tracker mortgage and now that Mr Reds is moving in I would like to start paying more off the mortgage every month. Will I be penalised for doing this?
As this is a tracker, how do I work it out with the bank? Do we just agree on a set percentage or amount?
Click to expand...

I was talking to somebody in UB about this only today and they said there is no problem increasing and decreasing payment amount on a tracker, as long as you cover the minimum I guess.
 
Put your instruction in writing to Ulster Bank that you want to pay an additional €X per month. Make sure to put it in the letter that you want this €X per month to be paid off the capital with immediate effect.

As you're on a Tracker Variable, there will be no penalty for doing this.

Liam D. Ferguson
www.ferga.com
 
I have tracker variable (AIB) too of approx 250K (21 years left) and now that I've just got my SSIA cheques I'm in a position to lodge approx 40K against the mortgage immediately and to increase my monthly payments by €500.

Anyboby got any tips/advice before I contact the bank?

What sort of impact will this money have on the life of my mortgage and the interest? Also - arnt AIB offering lower rates to those borrowers with high equity in their property?


Thanks
 
Why don't you plug the figures into www.jeacle.ie and see for yourself the impact it will have. It should dfefinately reduce the term considerably!
 
Baz,
If your loan to value (mortgage outstanding v's market value of house) is less than 50% then you are entitled to European Central Bank + 0.6% at AIB.
Tips - just make sure you pay the 40k off the capital.
 
Thanks...once I pay the 40K the LTV will be approx 24% so hopefully that'll get me a better rate
 
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