BOI move to fixed rate and lose overpayment benefit

TrixieBlue

Registered User
Messages
11
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?
 

luckystar

Frequent Poster
Messages
164
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?
 

Brendan Burgess

Founder
Messages
38,704
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
 

TrixieBlue

Registered User
Messages
11
Thanks for the advice, I will do as you have suggested Brendan and try to chip away at the fixed mortgage of 35K
 

RedOnion

Frequent Poster
Messages
3,288
Good news BOi have said as I have an existing overpayment of €150 I can bring that to the fixed rate without penalties.
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.
 
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