Banks allowing customers to overpay their fixed rate mortgage without penalty

B

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I received some advertising ('Want your mortgage to finish faster') from the Ulster bank wherein if you are in a fixed rate loan you can pay back an extra 5 % without penalty. This is a very welcome development are other banks doing the same?
 
Got the same from First Active though that doesn't qualify as an 'other bank'!
 
I have heard, second hand, that First Active are going even further and suggesting to some people on fixed rate loans that they might switch their fixed rate mortgage to another institution completely without penalty.

Brendan
 
I didn't get that insert (haven't got a statement in a while); just rang up and they said it was possible to step up payments or pay lump sum. Have to call into branch (First Active - so not around for much longer...) to discuss. Said there would be a breakage clause to switch entirely to variable, considering some of the decent fixed rate deposits that's not really a runner.
 
Sounds like banks are worried about negative equity and encouraging customers to switch to other lenders....
 
however on the FA blurb that came with the statement your lump sum still has to be at least 5% of the original amount drawn down. So although its easy to repay more per month lumps sums still have to be over a specific amount
 
askalot said:
Got the same from First Active though that doesn't qualify as an 'other bank'!
Click to expand...

folks,

any chance you could post more details on this? (or even scan the flyer) I called but was told to go into a branch; they hadn't a clue in there (pretty clueless generally but that's another matter).

thanks
 
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