I contacted Permanent TSB this morning to arrange overpayments on my mortgage. Not something that can be arranged on the phone, they are sending me out a 'Flexible Options' form to complete. Fair enough.
However, I asked if the overpayment would be offset against the capital and they said that the payments would be held in reserve on the account. They said that this would have the same effect in reducing my interest bill. The overpayments will simply accumulate in the account until I make a phonecall to them requesting that the amount be offset against the capital. Apparently €1500 would be the minimum amount that they would offset.
Does this make sense??? Do I really have to keep ringing them every couple of months to 'activate' the overpayment? What am I losing out on and what are they gaining by this???
However, I asked if the overpayment would be offset against the capital and they said that the payments would be held in reserve on the account. They said that this would have the same effect in reducing my interest bill. The overpayments will simply accumulate in the account until I make a phonecall to them requesting that the amount be offset against the capital. Apparently €1500 would be the minimum amount that they would offset.
Does this make sense??? Do I really have to keep ringing them every couple of months to 'activate' the overpayment? What am I losing out on and what are they gaining by this???