07_Maestro
New Member
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Overpaying had never been a legitimate grounds for withdrawing a fixed rate mortgage.Sorry to jump on here. We have a fixed rate with AIB but would like to start overpaying on our mortgage. Does anyone know can we still over pay with out affecting our rate?
But with the shorter term you would pay less interest over the duration of the loan.First any payment you make comes off capital as AIB add interest to the mortgage periodically and your capital goes up.
My view is do not under any circumstances shorten your term. This is because for any reason that you need to reduce your payments you can do if you haven't altered your term. Altering your term will commit you to these larger payments.
You make the additional payment voluntarily.
AIB will either reduce the term or facilitate the increased payment. If I were in your shoes I would contact AIB to make sure that your term wont be shortened.
If you keep over paying, the mortgage will naturally be paid off early anyway but you have the option to skip a month's overpayment if you wish. Or stop the overpayments altogether if circumstances change. With the shorter term you are stuck paying the higher amount.But with the shorter term you would pay less interest over the duration of the loan.
Thanks for the information. I rang them and they told me this. You can make up to 5k overpayment per calender year. But if we make the overpayment our payments will reduce which we do not to happen. We have decided to just save the money and hopefully in 18months we can pay off the mortgage in full.Overpaying had never been a legitimate grounds for withdrawing a fixed rate mortgage.
Their current policy is to allow €5k a year without trigger a break fee calculation.
AIB Fixed Rate Mortgage - now allows €5,000 early repayment annually
Dear Customer We are writing to let you know about our new AIB Fixed Rate Mortgage Overpayment feature that will soon be available to you. From 14 October 2023, all fixed rate mortgage customers can make payments, over the normal regular scheduled payments, up to €5,000 each calendar year for...www.askaboutmoney.com
Don't get overly fixated on that as a limit. You can pay off as much or as little as you like and it won't effect your rate. There may be a break fee but depending when you took your mortgage out that could easily be zero.
Thanks for the information. I rang them and they told me this. You can make up to 5k overpayment per calender year. But if we make the overpayment our payments will reduce which we do not to happen. We have decided to just save the money and hopefully in 18months we can pay off the mortgage in full.
There would be no break fee if we were to come off the fixed rate as we are on a very low rate, but the rate we would then be paying would be 2% more so happy to sit tight for now.
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