Cant do what?I'm with AIB and don't believe you can't do that any overpayments have to advised to either lower monthly repayment or the term.
Can you actually overpay AIB Fixed term mortgage.
I'm with ptsb on a fixed and you can overpay until your heart is content no penalty and the overpayment sits as credit on the account and the interest is reflected as if the credit was taken off the capital balance(i think) and then it stays there until you instruct them to use it to reduce the term or monthly repayment.
How can I overpay An AIB 5 Yr green 2.15% Fixed term rate every month like I am doing now with ptsb.
Thanks
Break fee is zero, so do you have to break and resign?I have fixed rate AIB. I send email last week of month asking for breakage fee. I get a letter back saying break fee is zero , then I transfer the funds. The only reason the break fee is zero is because the shofter term rates are higher than my 2.35% rate.
Mortgage Overpayments
Own your home sooner by paying more off your mortgage. You can pay more than your normal repayments off your mortgage with an extra monthly payment or a lump sum payment, or both. Try our Overpayment Calculator to see how much you could save.
Increase your monthly repayment amount
To make an extra monthly payment to your mortgage, you can set up another monthly standing order to your mortgage account through AIB Internet Banking or you can fill out the Overpayment Form. We will reduce the mortgage loan term because of the increase in your monthly repayments to your mortgage.
Make a lump sum payment to your mortgage
You can make a lump sum payment to your mortgage. You can do this through AIB Internet Banking or by filling out the Overpayment Form.
On the Overpayment Form you can choose between two lump sum payment options;
- Pay a lump sum and reduce your monthly repayment amount
Your monthly mortgage repayments will reduce in line with the reduced balance of the account. The remaining term and interest rate will stay the same.
- Pay a lump sum, maintain current monthly repayments and reduce your mortgage term
Your mortgage loan term will be reduced to keep the monthly repayments at approximately the same level as they were before the lump sum payment. The interest rate stays the same.
If you are on a variable rate you can increase your monthly repayments or make extra payments as an overpayment. If you are on a fixed rate, we may charge you an early breakage cost when you make an overpayment.
All parties to the mortgage must sign the Overpayment Form.
When you have filled in the Overpayment Form please email us at homemortgages@aib.ie or send it to AIB Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2. DX 183, Dublin.
No, break fee and ERC (early repayment charge) are frequently used in place of each other. Your loan agreement doesn't change. You are entitled within that agreement to make an early repayment and they are entitled to charge an ERC. If you request a break fee and don't specify an amount, they will quote you the fee for breaking the full outstanding balance.Break fee is zero, so do you have to break and resign?
Yes, if the break fee is zero, you can pay off the mortgage in full (or make a large overpayment) without penalty.So if they confirm the break fee is zero, you could in theory pay off the full amount and not have any early repayment charges at all ?
Sorry for laboring the point, but just want to confirm that there are no other fees associated with a full repayment other than the 'break fee / early repayment charge' - it appears not.
In either case, while you are on the AIB green rate at 2.15%, it is very unlikely that you will have a break fee because of how AIB calculate it.
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