Overpayment / re-fix flexibility of AIB's green 5yr fixed rate (and some other rates)

Because interest is calculated on a daily basis you save more money by making overpayments when you can do instead of waiting and doing lump sums
 
Merowig said:
Because interest is calculated on a daily basis you save more money by making overpayments when you can do instead of waiting and doing lump sums
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Thanks for this.

I am assuming the extra savings would be a single figure (less than 10 euros)? Let's say if do lump sums of €9,000 every 6 months vs €1500 once a month.
 
I came up with something like 54 Euro in saving interest ? (at your mortgage rate of 2.15)
Perhaps someone else also wants to check this
 
Would you save more in interest by adding €50 monthly rather than €600 annually ?

Would you need to fill in the overpayment form every month if doing the monthly amount ?
 
Merowig said:
Yes even on a fixed rate - since I draw down the mortgage some years ago I make every month an overpayment (which I also increase monthly), never filled out any form - letter with confirmation and recalculation arrives within one to two weeks.
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So the term is being reduced with each overpayment ?
 
Pinoy adventure said:
So the term is being reduced with each overpayment ?
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No you reduce the minimum mandatory repayment - which in my opinion is even better as it improves your cashflow. I am increasing my overpayment by what it was reduced the month before.


Also check out

Key Post - "Overpaying my mortgage - should I reduce the term or the monthly repayment?"

This question comes up in a variety of ways and the threads often go off topic with irrelevant calculations. The interest charged each year is exactly the same - we will return to this. Reducing the repayment is simply reducing the payment you are contractually obliged to make under your...
www.askaboutmoney.com
 
Hi, just come across this thread. I'm on the green rate @2.1% as of last August. Looking now to pay a few quid extra each week or month.

How do you go about getting the confirmation from AIB that i won't be penalised for over payment during the fixed term. I rang up and was told not very convincingly that I must submit the overpayment form.

Not sure from reading the thread I need to do this. Ideally there's a department I can ring and they post out the overpayment quote.

Would like this before I transfer on the App

Thanks
 
Ron000 said:
Hi, just come across this thread. I'm on the green rate @2.1% as of last August. Looking now to pay a few quid extra each week or month.

How do you go about getting the confirmation from AIB that i won't be penalised for over payment during the fixed term. I rang up and was told not very convincingly that I must submit the overpayment form.

Not sure from reading the thread I need to do this. Ideally there's a department I can ring and they post out the overpayment quote.

Would like this before I transfer on the App

Thanks
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Never completed any form when I do my monthly overpayments.
You can ask them for the early repayment charge and you will receive a letter after a week or so but with your rate and the current AIB rates there won’t be any penalty charge. In case of doubt just transfer a small amount for testing. As long as AIBs current rates are higher than your rate for the remaining period you won’t have an early repayment charge.
 
Pinoy adventure said:
What do you mean by this ??
Would this be applicable to new mortgages also ?
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See here:

Key Post - Understanding Fixed Rates breakage costs

Moderator's note: for anybody who is thinking of switching their mortgage (or re-fixing with their current lender), consider posting your mortgage details in the switcher thread (in the format shown in the first post). Someone will calculate an estimate of the break fee (if any) and of the...
www.askaboutmoney.com

Key Post - Switch or re-fix my mortgage? Breakage fee calculator and savings estimates for your case (Ireland)

I am creating this thread as a place where people can request guidance on whether they should switch their mortgage to another lender (also called mortgage refinancing or remortgaging) and, if so, which lenders and interest rates they might consider switching to. You are allowed to switch even...
www.askaboutmoney.com
 
Did everyone just get the email from AIB regarding 'AIB Fixed Rate Mortgage Overpayment Allowance".
This seems to be an attempt to get around the overpayment loophole?
 
Ronan_M said:
Did everyone just get the email from AIB regarding 'AIB Fixed Rate Mortgage Overpayment Allowance".
This seems to be an attempt to get around the overpayment loophole?
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Could you share the wording?
And is this a former Ulster Bank mortgage, or originated with AIB?

The 'loophole' is contractual, so AIB cannot remove it.
 
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