Paying off part of a fixed mortgage

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corkgal

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We have a part tracker and part fixed mortgage. We would like to pay a lump off the fixed part while leaving the rest of the fixed on the same rate, i.e. not change fixed rate.

We are with AIB, is this possible? I'm sure they will suggest paying off the tracker but obviously it makes more sense for us to pay some of the fixed if possible.

Fixed rates are now slightly higher than when we took out the loan, about half a percent.


Any done this or something similar?
 
If you do pay off some of the fixed, I'd imagine there will be a fee or penalty charged for this?
 
You normally can't pay a lump sum off a fixed without breaking the fixed rate first and paying any penalty, you would not go back to the same fixed rate if you decided to fix again unless bank is offering same rates now. When is your fixed up and what rate are you fixed at? Could you just invest the money at best rate available for term to match when fixed term will be finished.
 
corkgal said:
We have a part tracker and part fixed mortgage. We would like to pay a lump off the fixed part while leaving the rest of the fixed on the same rate, i.e. not change fixed rate.

We are with AIB, is this possible? I'm sure they will suggest paying off the tracker but obviously it makes more sense for us to pay some of the fixed if possible.

Fixed rates are now slightly higher than when we took out the loan, about half a percent.


Any done this or something similar?
Click to expand...

I know ICS used to allow you to pay off up to 10% of a fixed loan without penalty. This may have been possible once a year - I'm not sure. AIB may have something similar - if so, then at the very least you could do this. If they have fixed 'year ends', then perhaps you could do one just before and another just after, to get a 20%(ish) reduction in a short space of time.
 
AIB say we have to break the fixed and move to variable if we want to do this. They are sending the breakage costs out.

Thanks for the info above
 
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