looptheloop30
Registered User
- Messages
- 15
Hi all, recently started paying off a BOI mortgage on 220000 at 4.35% fixed for 2 years, variable thereafter for another 23. Cashback at 2% received.
Am hoping to get it paid off sooner than that and currently overpaying by the extra 10% allowed.
Im hoping to pay 20-30k off once I enter the variable phase before switching/fixing again at hopefully a considerably lower interest rate by then.
My understanding is that there is no limit to this amount which can be overpaid when on the variable rate but my query is to whether I will be liable to some form of penalty for hopefully having my overall mortgage paid off nearly 5 years early. If so any guidance on what that may be would be greatly appreciated.
Im aware every case is different and dependent on rates at the time but anything I read re charges relate to repaying the fixed term part of a mortgage early. Maybe Ive missed something very obvious but if I stick with my repayments +10% for the 2 years fixed, then go variable and pay off a lump, switch and fix again for 3/5/10 and repeat the process at the end of the fixed portion what kind of early repayment charge am I looking at? Nominal? Hundreds? Thousands? I'm almost certainly going to follow that plan either way as interest saved will counter any potential penalty unless I'm missing something
In good financial state aside, pension maxed, savings available if needed etc but with interest rate higher than deposit rates Id like to get on top of it sooner rather than later
Am hoping to get it paid off sooner than that and currently overpaying by the extra 10% allowed.
Im hoping to pay 20-30k off once I enter the variable phase before switching/fixing again at hopefully a considerably lower interest rate by then.
My understanding is that there is no limit to this amount which can be overpaid when on the variable rate but my query is to whether I will be liable to some form of penalty for hopefully having my overall mortgage paid off nearly 5 years early. If so any guidance on what that may be would be greatly appreciated.
Im aware every case is different and dependent on rates at the time but anything I read re charges relate to repaying the fixed term part of a mortgage early. Maybe Ive missed something very obvious but if I stick with my repayments +10% for the 2 years fixed, then go variable and pay off a lump, switch and fix again for 3/5/10 and repeat the process at the end of the fixed portion what kind of early repayment charge am I looking at? Nominal? Hundreds? Thousands? I'm almost certainly going to follow that plan either way as interest saved will counter any potential penalty unless I'm missing something
In good financial state aside, pension maxed, savings available if needed etc but with interest rate higher than deposit rates Id like to get on top of it sooner rather than later
