Our mortgage was originally with AIB and during the recession when one of us was out of work we came to an arrangement with AIB whereby we would pay a set amount every month - €1200. This would leave us with a balloon payment but we had good equity in the house.
Our mortgage was sold off in a bundle by AIB to Mars a few years ago. Mars have steadily increased the interest rate meaning we are now paying very little off the capital.
We are now in a much better position financially and both of us are working again.
I asked for a settlement amount from Mars last week and was shocked to find that we still owe €224,000.
Is it true that we can now overpay our mortgage with Mars in order to reduce the capital?
What would the effect be of overpaying be €800 a month for the next 8 or 10 years?
Thank you in advance to anyone who has any information.
Our mortgage was sold off in a bundle by AIB to Mars a few years ago. Mars have steadily increased the interest rate meaning we are now paying very little off the capital.
We are now in a much better position financially and both of us are working again.
I asked for a settlement amount from Mars last week and was shocked to find that we still owe €224,000.
Is it true that we can now overpay our mortgage with Mars in order to reduce the capital?
What would the effect be of overpaying be €800 a month for the next 8 or 10 years?
Thank you in advance to anyone who has any information.