NoRegretsCoyote
Registered User
- Messages
- 5,766
Term | Rate |
1 year | 2.9% |
2 year | 2.9% |
3 years | 3.0% |
5 year | 3.0% |
10 year | 3.3% |
It's just part of the monthly payment and 10% above what the normal amortising monthly payment over the remaining term is. It reduces a 30-year term to about 26 years. It's a nice feature as there's no effort involved.The 10% overpayment allowable figure is that calculated at the beginning of each year and does the bank advise of what the number is?
Are there any other banks that offer an overpayment option on mortgages preferably similar to Ulster banks one
Can I ask how long you were waiting for them to send the paperwork? I called about 2 weeks ago to re-fix but still haven’t received anything in the post.I have approx €200k of an outstanding mortgage with BoI, 20 years left on the term. For various reasons we can't switch. No plans to move and if we need to I don't think a break fee would be material in the scheme of that decision.
I fixed at 2.9% in February 2022 for three years, so until February 2025.
Today BoI confirmed in writing that there would be no break fee and I could fix again at the following rates
Term Rate 1 year 2.9% 2 year 2.9% 3 years 3.0% 5 year 3.0% 10 year 3.3%
I am pretty tempted to fix for five years at 3.0%. Compared to the 2.9% I am on now I would pay approx €500 extra between now and February 2025 but with the guarantee of no further rises until October 2027. BoI would still allow the 10% overpayment without penalty that we currently benefit from.
For the record I am trying to time the market here. I think mortgage rates respond to money market rates with a lag and have surprised BoI haven't increased rates yet. AIB have just confirmed that they are increasing fixed rates for new buyers by 50bps, admittedly from a lower base.
I think there's a material risk of sustained higher policy rates over the next five years potentially taking retail mortgage rates to the 4%-5% territory. On the other hand we could have very low policy rates in 2 years time if there is a big recession and inflation disappears. But in this case I can't see BoI dropping rates any lower at all than the 2.9% they had when policy rates were at zero.
So in my case is there any downside to fixing now for five years?
Arrived I think three working days after request.Can I ask how long you were waiting for them to send the paperwork? I called about 2 weeks ago to re-fix but still haven’t received anything in the post.
I think you can request it online, have a look at it here. Seems simple enough.Can I ask how long you were waiting for them to send the paperwork? I called about 2 weeks ago to re-fix but still haven’t received anything in the post.
It could indeed I guess, yes. But no plans to move and can't switch.Could it result in a potentially higher future break fee? (E.g. if rates dropped lower).
Thanks for the info! I endured 40 mins on hold the first time I rang so I thought my delay was just a delay in processing the paperwork but it looks like it got lost in the post. I requested it online this time on Friday, hopefully it comes through before the rates increase.Arrived I think three working days after request.
I was holding for half an hour to actually talk to someone in mortgages. A lot of people panic-fixing I think.
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