I did a small transfer into my mortgage as a test. In the mobile app.
The 'remaining balance' decreased by the amount of the transfer. The 'arrears/prepayment' field stayed at 0. And so far the next payment amount has not changed.
I may not be a perfect test case of overpaying a fixed mortgage penalty free, as my redemption letter arrived and it indicates there would be no current penalty for paying off my mortgage early. (Probably because I fixed at a low rate)
PTSB should really advertise the shít out of this. The former sounds very appealing. Reducing the term and interest paid whilst also giving you a little safety net in case you need it.I got some further clarifications from an agent on a phone call;
When you send the money, without filling out a form signalling your intent, it acts "as credit" i.e. by default your monthly payments don't change, and the term is reduced. I understand, the principal is reduced, and the annual interest added to your account would hence be lower, and more of your monthly pay is actually going against the principal, resulting in a shorter term. In "credit" mode, if you missed a direct debit, it would be paid from this credit, or if you applied for a payment holiday it would be paid from this credit.
*BUT* if you want to reduce your monthly payments, you must fill out the overpayment form, and specify to use the credit to reduce payments, but in this case, you no longer have 'credit' on your accout, so you can no longer use the overpayment for a future holiday. I was surprised by this lack of flexibility, but have not yet re-confirmed with another call.
Did you set up the mortgage IBAN as a payee?No, I sent it to their supplied IBAN, with a reference of my existing mortgage account number.
Yes. I setup as payee. With my mortgage account in the payment reference.Did you set up the mortgage IBAN as a payee?
I assume you could set up a standing order from your current a/c to the mortgage IBAN.