I didn't know you could do this, thank you!If you wish to maintain the monthly repayment as it is, after making the lump-sum overpayment, then simply state this to the mortgage lender.
This means that the effective term of the mortgage will reduce, but the official term has not changed.
I have done this several times.
Always reduce monthly repayment. As Dr.Strangelove said above, it give you headroom should you ever need it but not the other way around.I have always paid lump sums off my mortgages over the years to reduce the term, not the monthly repayment.
This has worked very well.
Also remember when you do this that you also contact your mortgage protection company and advise them.
Perhaps to seek a reduction in cover.Why?
What's the issue? If you've the mortgage account number/reference you should be able to do it yourself.Has anyone sucessfully set up lump sum mortgage overpayments via their on line banking?
Getting the run around with PTSB at present.
Back in the day I was on a split mortgage. I annually paid a lump sum to reduce the term......off the variable rate.If you are on a variable rate, it is correct to always reduce the repayment and keep the term - because you can overpay without penalty.
You can of course do it (reduce term) but the argument against it -as already outlined above - is you're effectively limiting your flexibility if you should ever be in a situation where your ability to service the repayments is stretched.Back in the day I was on a split mortgage. I annually paid a lump sum to reduce the term......off the variable rate.
Split mortgage (generally one variable and one fixed) have its own benefit.. but depending on how much you overpay every year.. lenders such as AIB allow you to overpay now up to 5K on fixed mortgage per year without penalty since 14 Oct 2023.. The point here is you don't need variable to overpay any more.Back in the day I was on a split mortgage. I annually paid a lump sum to reduce the term......off the variable rate.
I think it’s just the 1 account gets free banking unless it’s a joint accountPartly for this and partly for free banking for you and spouse (where you have spouse that also bank with AIB).
No, I have done it between myself and my wife, we don't have a joint current account.. the crucial part here is starting with split mortgage (one variable and one fixed) both paid via direct debit from my current account at the start. Eventually I changed the variable portion to fixed also as it has better rate than variable at the time (and due to the way AIB overpayment work from the regulatory information sheet formula previously discussed here on AAM).I think it’s just the 1 account gets free banking unless it’s a joint account
You would imagine so.What's the issue? If you've the mortgage account number/reference you should be able to do it yourself.
So what part of the process are you (or rather PTSB) having difficulty with?You would imagine so.
That however has not proven to be the case. Which is why I asked the question.
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