I had/have an interest only (tracker @ 0.95%) mortgage for €260,000 with my bank which had a redemption date of 31st August 2018. The bank didn't contact me to say the capital was due to be repaid and when I contacted them a few days before the redemption date they advised me that the redemption amount was €260,780. When I asked where the additional €780 came from I got some woolly answer about the way interest was calculated. I asked for an explanation of this €780 to be given to me in writing which I never received. Most surprisingly they also advised me that the redemption date had been moved out for 12 months and I now had until 31st August 2019 before having to clear the loan. I have to say I was amazed when I was told this. I decided to repay the capital sum pending seeking further clarification on the €780 so forwarded a cheque for €260,000. I received a correspondence a week later which stated (and I quote): "We have lodged the payment to your mortgage to reduce the balance. Your monthly repayment of €206 will remain unchanged because of the arrangement you have in place with us". Two questions: 1) is shoving out the redemption date out by 12 months normal practice? 2) more importantly, can they continue to charge me €206 per month even though the loan balance has been reduced to €780?