R
russell6
Guest
I currently have a First Active tracker mortgage and I would like to make a regular overpayment off my mortgage. As I want to try reduce the term of the mortgage I want this regular payment to come off the capital amount.
I contacted First Active to ask could I do this and I was told no regular payments are taken off the capital amount. I was told I could make a "Step-Up" payment which one piece of literature states "this amount does not directly come off your balance but has the effect of building a credit balance on your account" and another piece of literature states "the loan balance will be reduced by the overpayment for the purpose of calculating the interest"
Are both these statements saying the same thing???
So is it worth my while to make any overpayment on my mortgage with these conditions??
I am really keen to try reduce the term of the loan. While I am figuring out the above situation I am paying the excess money I have on a monthly basis into a BOI regular saver account at 7% - should I just continue with this instead until I have enough to make a lump sum payment which First Active are saying has to be 5% of original loan?
I thought the banks would be delighted I wanted to give them some extra cash but it doesn't appear so!
I contacted First Active to ask could I do this and I was told no regular payments are taken off the capital amount. I was told I could make a "Step-Up" payment which one piece of literature states "this amount does not directly come off your balance but has the effect of building a credit balance on your account" and another piece of literature states "the loan balance will be reduced by the overpayment for the purpose of calculating the interest"
Are both these statements saying the same thing???
So is it worth my while to make any overpayment on my mortgage with these conditions??
I am really keen to try reduce the term of the loan. While I am figuring out the above situation I am paying the excess money I have on a monthly basis into a BOI regular saver account at 7% - should I just continue with this instead until I have enough to make a lump sum payment which First Active are saying has to be 5% of original loan?
I thought the banks would be delighted I wanted to give them some extra cash but it doesn't appear so!