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

    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

    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

    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.

  4. TrixieBlue

    TrixieBlue Registered User

    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

    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

    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.