AIB I want to keep paying the same mortgage payment

[Deeks1]

Even though my mortgage payments should decrease by approx 16% I would intend to keep paying the same amount in order to finish the mortgage early. If I was to move on to the 3 yr fixed rate of 2.55% does anyone know if you can specify that you want to overpay on a fixed rate without penalties?

 

[Brendan Burgess]

You can't overpay a fixed rate without penalty.

But when they write to you with information about the reduced mortgage payment, you can tell them:

1) Please fix the rate
2) At the same time, reduce the remaining term of the mortgage so that the repayment remains the same.

If you think that you might want to overpay it even further during the three years at 2.55%, then you should ask AIB to split the mortgage into one part fixed and one part variable.

Then you can overpay the variable bit as and when you like.

Brendan

 

[Deeks1]

You can't overpay a fixed rate without penalty.

But when they write to you with information about the reduced mortgage payment, you can tell them:

1) Please fix the rate
2) At the same time, reduce the remaining term of the mortgage so that the repayment remains the same.

If you think that you might want to overpay it even further during the three years at 2.55%, then you should ask AIB to split the mortgage into one part fixed and one part variable.

Then you can overpay the variable bit as and when you like.

Brendan

Thanks Brendan and once again huge thanks for all your work on this.

 

[lizz1979]

Hi Brendan I requested my mortgage be split between fixed and variable recently and they said it wasn't possible. I was not impressed.

 

[kelbre]

Sorry I am so clueless about all of this, but will the redress decrease our monthly payments now also? I was presuming I would now have to renegotiate based on the decreased LTV...

 

[Deeks1]

Sorry I am so clueless about all of this, but will the redress decrease our monthly payments now also? I was presuming I would now have to renegotiate based on the decreased LTV...

The redress should reduce your monthly payments regardless of a change in rate. If say your loan balance yesterday was €200k and you got a write down of €40k your repayments should reduce by 1/5 going forward as your have 1/5 less to pay overall. Any potential decrease in rate due to LTV etc has the potential to reduce the repayments further.

 

[kelbre]

The redress should reduce your monthly payments regardless of a change in rate. If say your loan balance yesterday was €200k and you got a write down of €40k your repayments should reduce by 1/5 going forward as your have 1/5 less to pay overall. Any potential decrease in rate due to LTV etc has the potential to reduce the repayments further.

Thank you for explaining!!

 

[PP_ITB]

Payments may not always reduced I am on a variable rate and pay extra. I filed a form in a few years ago that states that when extra is paid the term of the mortgage is reduced rather than the payments.

I would advise to ask about this form if you want to stay paying the same

 

[Delzer]

We plan on selling our house within the next year or so. Would it be better to increase our monthly repayments now or leave at the new reduced amount and manually save the difference?