I have a balance of about €108K on my PTSB mortgage and remaining term is 175 months. My monthly repayments are about €800 and at the moment, I am able to make monthly overpayments of €2250 (at total of about €3K).
PTSB tell me that if my regular repayments remain at €800 per month and if I continue to make overpayments of €2250 per month, then it will take another 37 months to clear the mortgage. This makes sense to me because €108K/€3K is 36.
However, with each overpayment, I receive an letter from PTSB that states that the term on my mortgage has been reduced by 6 months. The regular monthly repayments reduce the term by one month - a total of 7 months. So, another way at looking the effect of the overpayments is that is to say that in 175 months, I have 175/7 = 25 payments left, i.e., it would take another 25 months to clear the mortgage. PTSB were unable to explain why you get two different answers depending on how you do the calculation. Can anyone enlighten me? Thanks.
PTSB tell me that if my regular repayments remain at €800 per month and if I continue to make overpayments of €2250 per month, then it will take another 37 months to clear the mortgage. This makes sense to me because €108K/€3K is 36.
However, with each overpayment, I receive an letter from PTSB that states that the term on my mortgage has been reduced by 6 months. The regular monthly repayments reduce the term by one month - a total of 7 months. So, another way at looking the effect of the overpayments is that is to say that in 175 months, I have 175/7 = 25 payments left, i.e., it would take another 25 months to clear the mortgage. PTSB were unable to explain why you get two different answers depending on how you do the calculation. Can anyone enlighten me? Thanks.