Thanks. And because AIB use whichever is favourable to the customer and the green rate is the lowest fix rate, we'll be fine.Yes, correct.
The 2nd calculation looks at market (inter bank) rates, but AIBs own variable rates don't factor.
It will definitely be €0. They have no rates anywhere near 2.15% now. The letter will only state your new monthly repayment.Just made a lumpsum payment today.
I am on 5 year green fixed mortgage at 2.15%.
Now waiting games begin until I get a letter and hopefully it will be a zero break fees.
I hope so also that it will be €0 break fee.It will definitely be €0. They have no rates anywhere near 2.15% now. The letter will only state your new monthly repayment.
If you want to, and it's easily affordable, you could pay the monthly reduction amount as an extra payment every month and it would still be €0 break fee each time.
Interest in calculated daily so you're better off paying down a portion of debt earlier rather than later. However I'd caveat all that by pointing out a mortgage rate of 2.15% is exceptionally low in the current environment. Assuming you've good willpower and won't squander it, you'd be financially better off availing of some of the high rate fixed products mentioned in the best buys thread.I hope so also that it will be €0 break fee.
They do send out 2 letters—one with a new reduced monthly payment and the other stating that the break fee was zero. I got them letters in February this year.
Now the main question is:
Is it financially better to pay lumpsum every six months
Or
Increase the monthly repayment hoping the break fee will be zero.
Thanks
Thank you for pointing me in the direction of deposits. I can see Raisin bank is offering highest rate, but I don't trust them but have trust issues with them. I have never heard of them on Irish media apart from some forums. I know they also offer 100k protection.Interest in calculated daily so you're better off paying down a portion of debt earlier rather than later. However I'd caveat all that by pointing out a mortgage rate of 2.15% is exceptionally low in the current environment. Assuming you've good willpower and won't squander it, you'd be financially better off availing of some of the high rate fixed products mentioned in the best buys thread.
Best Buy - Term Deposits (Fixed Lump Sum Savings)
Rates are frequently updated. Information last changed: 4 April 2024. Highest Term Deposit Rates 1 Year - BluOr (Direct) and A&G via Raisin - 3.50% 2 Years - BluOr (Direct) and TFBank via Raisin - 3.40% 3 Years - BluOr (Direct) - 3.30% 4 Years - TFBank via Raisin Bank - 3.25% 5 Years -...www.askaboutmoney.com
With a fixed mortgages rate of 2.15% any deposit rate guaranteeing you better than 3.21% would leave you better off saving rather than paying down your mortgage.
Not for everyone but one that is worth considering before making any payments:
Better to save than to overpay a low fixed rate mortgage in some instances?
A recent post got me thinking are we close to the point where it makes financial sense to save rather than to pay down debt i.e., for some borrowers the return on savings (net of DIRT & PRSI) is greater than overpaying a fixed rate mortgage. There was a point in the past where this strategy...www.askaboutmoney.com
I've set up a standing order to pay extra off our main mortgage and top up mortgage every 2 weeks (when we get paid). It's going to be a waste of paper sending out 4 letters every 2 weeks. Wish they would just do it by email or adding them to my account.I hope so also that it will be €0 break fee.
They do send out 2 letters—one with a new reduced monthly payment and the other stating that the break fee was zero. I got them letters in February this year.
Now the main question is:
Is it financially better to pay lumpsum every six months
Or
Increase the monthly repayment hoping the break fee will be zero.
Thanks
No fees or charges but like deposits with Irish banks there may be taxes similar to DIRT (which can be offset against Irish DIRT).I am still thinking about whether to open an account with Raisin Bank, but I need to do my research first and check if there are any hidden fees or quarterly charges, etc.
I prefer to have cash ready in case of emergency. Would Raisin allow you to break deposits without penalty?
It's a very remote chance but not zero that the bank you deposit with runs into issues. However, depending on the level of deposits, you should be covered by a deposit guarantee scheme.When I pay mortgage, at least I know it's for the ownership of my house irrespective of the economic crisis in the world. So there is a piece of mind.
Did this work out as expected?Just made a lumpsum payment today.
I am on 5 year green fixed mortgage at 2.15%.
Now waiting games begin until I get a letter and hopefully it will be a zero break fees.
You can just make a transfer. Do a test transfer of 100 if in doubt.Did this work out as expected?
I'm hoping to make overpayment soon and have the same mortgage rate as you. Did you submit overpayment form or just transfer in the app?
thanks @orwell, going to do this through the app so. The thing I'm trying to avoid is losing the 2.15% rate but reading the replies above it seems like this won't happen.I do it through the AIB app, ive done lump of 2700 one month and I do at least 300 each month, because of the internet rate I’ve had no penalty .. so I make the payment and the letter arrives maybe 2 weeks later saying payment received , the new monthly mortgage payment and that there is no penalty but if I make another payment depending on rates there may be a penalty.. every month since I drew down last November..
Which rate is higher than what?What happens if the interest rate is higher ?
A break fee is due ??
Orwell mentioned his/her rate was 2.1.Which rate is higher than what?
No, because AIB have since increased their rates again. There'd be no break fee.Orwell mentioned his/her rate was 2.1.
If a person was fixed on a higher rate let’s say
4.2 would a break fee be due too AIB if they paid off either a small monthly overpayment of €150-€300 or a yearly once of payment of between €1500-€3000 ?
Yes, it worked out as expected.Did this work out as expected?
I'm hoping to make overpayment soon and have the same mortgage rate as you. Did you submit overpayment form or just transfer in the app?