Monthly mortgage prepayments

hi, we are arranging a one off out of course lodgement against the principle of our mortgage in order to reduce the term. this will knock 5 yrs off the mtg according to karl jeacles calculator. now, if i arrange an additional monthly prepayment of €200 pm then this will knock a further 5yrs off!! Our mtg is with AIB, tracker type, - do aib allow prepayments, i.e. additional payments every month on top of our usual mortgage payment amount but directed at reducing the outstanding principle? Also, can i stop these additional payments if we need extra cash??

Re: Monthly mtg prepayments

Yes and yes but make sure you put your instructions to AIB in writing clearly and get a clear acknowledgement from them.

Re: Monthly mtg prepayments

Do you know if you can do this while you're still in your fixed rate period?

Some lenders may allow a certain leven of accelerated capital repayment even while on a fixed rate but many will impose penalties for early redemption in part of full during a fixed rate period. In short - check the terms & conditions of your fixed rate loan and ask your lender.

am on a tracker mortgage.

bobo said:

Also, can i stop these additional payments if we need extra cash??

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Yes, just write to them with revised instructions.

thanks

Boylers said:

Do you know if you can do this while you're still in your fixed rate period?

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ClubMan said:

Some lenders may allow a certain leven of accelerated capital repayment even while on a fixed rate but many will impose penalties for early redemption in part of full during a fixed rate period. In short - check the terms & conditions of your fixed rate loan and ask your lender.

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bobo said:

am on a tracker mortgage.

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I was responding to Boylers' post.