Overpaying Fixed EBS Mortgage

Discussion in 'Mortgages and buying and selling homes' started by Puddin, 8 Jan 2019.

  1. Puddin

    Puddin Registered User

    Posts:
    12
    Hi All,

    I have an EBS 5 year fixed mortgage at 3% and am considering starting to overpay about €500 a month. Although there is no provision for overpaying by 10% like with BOI and UB am i still allowed to overpay on an ad-hoc basis and pay the percentage of fixed-rate breakage fee as a result whilst remaining on fixed rate ?

    As an example if i owed €300,000 with a fixed rate breakage fee of €1,000 and overpaid by €3,000 would i simply have to pay 1% of breakage fee and not the full €1,000 ?

    Thanks.
     
  2. RedOnion

    RedOnion Frequent Poster

    Posts:
    2,586
    Yes, technically that's how it should work. You should only pat a break fee on the actual amount being overpaid.

    I understand their systems / processes are a bit strange when it comes to overpayment.
     
  3. Puddin

    Puddin Registered User

    Posts:
    12
    Thanks RedOnion,

    Am i right to assume they must allow you overpay even on a fixed ?
     
  4. RedOnion

    RedOnion Frequent Poster

    Posts:
    2,586
    Yes, absolutely.
     
  5. HollowKnight

    HollowKnight Frequent Poster

    Posts:
    83
    It may work out simpler for you to save up your 'ad hoc' money for say six months and pay off a lump sum rather than monthly.
     
  6. Puddin

    Puddin Registered User

    Posts:
    12

    That's true if you're the disciplined type but i'll throw it in each month cos i'm at risk of buying shiny new things with the savings !

    I talked to them and it's straight forward enough. it would take over 4 years off my 17 year mortgage if i kept it up so a no-brainer really.
     
    RedOnion likes this.