AIB - managing overpayments

Hi all,
I've got an AIB variable rate mortgage and was intending making monthly overpayments but the amount would be of a variable nature. I want these sums to reduce the term, and not the monthly repayment. It seems the default for overpayment is to reduce the monthly repayment, and they want a written instruction for each overpayment if I want the term reduced. If I increase the direct debit, then that works, but I'd rather have the ability to chuck ad-hoc amounts at the mortgage on a monthly/bi-monthly basis depending on how funds allow.
They will take scanned letter by email as 'written instruction', so I'm tempted to just set a monthly scheduled email telling them to take 'recent' overpayment as reduction in term.

Has anyone found a better solution to working this out with AIB?

Thanks,
Tom

Hi Tom,

Why do you want to reduce the term over the monthly repayments? Having reduced monthly repayments will give you more flexibility down the line if you run into financial difficulty. AIB make it vary easy to overpay variable rate mortgages if you link the mortgage account to your online banking so if you just continue making the overpayments the mortgage term will be greatly reduced anyway.

It just seems a bit contradictory - ultimately I want to pay the mortgage off, so reducing the monthly repayments doesnt really help me do that. It just means I'd be shifting that 'saved' money back into another overpayment.

I will probably request them to increase the monthly direct debit payment, and then make ad-hoc payments quarterly/half-yearly and make the written request on that.

Hi
I am on variable @2.75 with aib and I transfer extra money monthly via the online app. The EXTRA money comes off the principle, which automatically lowers your monthly payment. Eg:
I pay 1000 a month as my monthly payment. I also then pay an extra a 500 a month. This 500 comes off my outstanding loan (the principle). As a result of this payment my next months Payement is slightly lower, eg 999. The term stays the same, but if I continue to pay an extra 500 I’ll finish the loan earlier anyway.
Overpaying with aib is automatically setup like this. When you transfer the money you get a confirmation letter sent out a few days later.