BOI Mortgage Overpayment Query

rebellad

Registered User
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47
We are in a fortunate position whereby we are looking to overpay our mortgage by a small amount. I have been in contact with my local BOI branch advising them of this and that I want to take the overpayment off the principal and keep the term the same. However they have advised that
"To achieve the repayment you are looking for , the term would need to be reduced to 21 years. (taking 8 years off your mortgage). " Current term is 29 years.

I have queried this as I am afraid that if at any stage I want to stop the overpayment then I would need to reapply for the longer term, however I have been advised that there would be no issue reverting to the longer term.

Does this sound ok? To be honest I am thinking of just putting the overpayment into an account and paying off a lump sum every 12 months.
 
Does this sound ok? To be honest I am thinking of just putting the overpayment into an account and paying off a lump sum every 12 months.

That is the correct way to do it.

I have not seen it in writing anywhere from any bank, that if you increase your repayments, you can decrease them if you need to do so.

So, keep it simple and pay off lump sums from time to time.

Brendan
 
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