AIB: No penalty Early repayment within the 1st year?

Hi everyone,

I’ve learned so much from this forum throughout my mortgage application process—thank you all!

Drawdown a new build in 2 months.

In my AIB mortgage offer, there’s a clause about early repayments. It says that if I repay early during a fixed term, they’ll compare the interest rate for the remaining term rounded down and up. For example, if I have 3.5 years left, they’ll look at both the 3-year and 4-year fixed rates and compare them to my current mortgage rate.

I’ve recently received a bonus and would like to reduce the amount I borrow. However, the mortgage application took a painful two months, and I’m hesitant to change the loan amount now, since that might require resubmitting all the documents and going through the process again.

So I’m wondering: can I take advantage of that early repayment clause and make a lump sum repayment just a few days after drawdown?

Far easier to just get a revised loan offer issued now for the new lower amount, that should not require any underwriting as you are reducing it.

You can pay 5K (each calendar year) without even have to worry about any calculation for fixed mortgage

From 14 October 2023, under all the fixed rates we offer, you can overpay up to €5,000 each calendar year for the term of your fixed rate and reduce your repayments, and we will not charge an early repayment charge up to this amount being applied. Any additional overpayments above €5,000, or early full redemption of your mortgage loan, may result in an early repayment charge if you are on a fixed rate. If you are on a fixed rate and ask to reduce the term, you will need to break out of your current fixed rate for which an early repayment charge may apply. A new interest rate will then need to be selected.

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