No.What are the chances they're bringing this in to cut out the unlimited overpayments mentioned above? Can they unilaterally change the contract like that?
AIB still haven't worked out that many of their fixed rate customers can make unlimited overpayments without incurring a break fee.
Yes, absolutely this is a benefit. It adds certainty to all customers.So this new feature will be of benefit to them.
I would like to shorten the term instead.
Is that an option for us?
Ah, I need to refresh my memory.I will need to wait until 2027 until fixed term ends
You can overpay manually each month and have same outcome.just a shame we can't reduce the term until it ends.
Keep it simple for illustration.If option 1 (reduce monthly premium) is the only option available would this not just reduce the monthly premium and keep the same overall term length?
Nice one
Unless AIB reduce interest rates from current levels, there is no breakage fee. This whole ability to pay 5k is a red herring at the moment (it's only of value if a break fee applies).Ignoring the breakage for a second
Keep it simple for illustration.
200k balance, 3% interest with 23 years remaining.
Mortgage payment 1,000 per month.
You overpay 10% of your balance (20k), so AIB reduces your monthly payment to 900. Term is still 23 years.
Each month you manually transfer an extra 100 to your mortgage, so you are paying 1,000 per month in total. If you keep doing that, you'll have it paid off in 20 years, instead of 23. Exact same as AIB reducing the term to 20 years now.
Unless AIB reduce interest rates from current levels, there is no breakage fee. This whole ability to pay 5k is a red herring at the moment (it's only of value if a break fee applies
You can overpay manually each month and have same outcome.
How would you go about manually overpaying??
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