We are one year into the 5 year 2.35% rate with AIB. I didnt realise that we couldn't overpay until we signed the contract. I would definitely try break out of the contract as we have recently been in the position to overpay but now can't. It's something I'm going to look into in the coming weeks.i am halfway through 3 yr Fixed 2.35% rate with AIB. This 3 year rate offers me the flexibility to make over payments with no fee. im wondering if its possible to break out of this contract and simply reapply for a new 3 year fixed rate to extent this loophole for free overpayments. if i went with the 5 year fixed 2.35% rate i wouldnt have this overpayment option
Based on this previous thread, you should simply have to ring AIB to confirm the zero break fee and it should be straightforward to break and refixim wondering if its possible to break out of this contract and simply reapply for a new 3 year fixed rate to extent this loophole for free overpayments.
Why do you think you will lose this flexibility with the 5 year rate? The same logic applies. All of AIB's 1-4yr rates are equal or higher than the 5 year rate so there should be no break fee for overpayments unless there is a big change in AIB's short term ratesif i went with the 5 year fixed 2.35% rate i wouldnt have this overpayment option
Likewise, you should not have any break fee based on the same methods applied above by AIBI didnt realise that we couldn't overpay until we signed the contract.
I have just gotten off the phone from AIB and have asked for a break fee letter to be issued. So I will know more in the next 10 working days. However the girl I spoke to said she thought the facility to over pay on any fixed term mortgage with AIB doesn't exist. But I suppose we could break the existing contract and sign up yo a new one and then reassess next year. Does anyone have any ideas if rates will be going up in near future? Crystal ball required I know!!Based on this previous thread, you should simply have to ring AIB to confirm the zero break fee and it should be straightforward to break and refix
Calling AIB customers who fixed before the latest fixed rate cuts in September 2020
Any customer currently on their 3 or 5 year fixed rates can break for free, and refix now at the lower rates. This is because of an extra calculation that AIB do looking at their own interest rates, so because they provide 2 & 4 years rates higher than the existing 3 & 5 year rates, they cannot...www.askaboutmoney.com
Why do you think you will lose this flexibility with the 5 year rate? The same logic applies. All of AIB's 1-4yr rates are equal or higher than the 5 year rate so there should be no break fee for overpayments unless there is a big change in AIB's short term rates
Overpayment / re-fix flexibility of AIB's green 5yr fixed rate (and some other rates)
Moderator's note: Because of a quirk in how AIB calculate their break fee / early redemption charge, you can make unlimited overpayments on some of their fixed rates without penalty. Or you can break out of your existing AIB fixed rate and re-fix on a different rate, again without penalty. (You...www.askaboutmoney.com
Likewise, you should not have any break fee based on the same methods applied above by AIB
@Familyman77 @Cathbarr None of AIB's fixed rates let you overpay without triggering a break fee. It's just that, because of a quirk in how AIB calculate their break fee, the break fee is often zero. (See the posts that @_OkGo_ linked to if you want the gory details.)i am halfway through 3 yr Fixed 2.35% rate with AIB. This 3 year rate offers me the flexibility to make over payments with no fee. im wondering if its possible to break out of this contract and simply reapply for a new 3 year fixed rate to extent this loophole for free overpayments. if i went with the 5 year fixed 2.35% rate i wouldnt have this overpayment option