BOI move to fixed rate and lose overpayment benefit

Discussion in 'The Fair Mortgage Rates Campaign' started by TrixieBlue, 9 Feb 2019.

  1. TrixieBlue

    TrixieBlue Registered User

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    5
    I have a loan of 35.4K at a rate of 4.35% which I currently have a letter from BOI to reduce fix to 2.9% for 2 years. I currently overpay this by €150 but my understanding is that most you can overpay on the fixed rate will be €65/month

    I also have a the main mortgage of 123K on a tracker of .75% with no overpayments.

    If I moved to the fixed rate offer on the smaller loan and switch the overpayment to the tracker mortgage, am I missing anything?
     
  2. luckystar

    luckystar Frequent Poster

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    90
    Are you worried about ability to continue the €150? Can you reduce the term so the amount is equal to what you're currently paying?
     
    TrixieBlue likes this.
  3. Brendan Burgess

    Brendan Burgess Founder

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    37,031
    Don't overpay your tracker when you have a fixed rate mortgage of €35k.

    Do what Lucky Star has suggested.

    Or else pay the €65 and save up the balance in some other account. When it gets to €1,000 ask about making a capital payment. The penalty for doing so is likely to be very small.

    Brendan
     
  4. TrixieBlue

    TrixieBlue Registered User

    Posts:
    5
    Thanks for the advice, I will do as you have suggested Brendan and try to chip away at the fixed mortgage of 35K
     
  5. TrixieBlue

    TrixieBlue Registered User

    Posts:
    5
    Good news BOi have said as I have an existing overpayment of €150 I can bring that to the fixed rate without penalties.
     
    Berneseduke, RedOnion and Blinder like this.
  6. RedOnion

    RedOnion Frequent Poster

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    2,681
    Very interesting. So once you already have the regular overpayment in place before you fix, it'll continue.

    You're not the first poster to have this outcome.