If you go to Settings, you can change this to show the impact if you were to reduce the payment.
If you go to Settings, you can change this to show the impact if you were to reduce the payment.Is there a calculator that can show me the impact of overpaying to reduce the capital, without reducing the term? The drmortgage calculator only seems to support reducing the term.
If you go to Settings, you can change this to show the impact if you were to reduce the payment.
No problem. I'm considering paying a lump sum myself at the moment. The temptation is to just reduce the term but the advice seems to be to reduce the payment amount via the lump sum but continue to pay your mortgage at the current rate as this gives the most flexibility if you run into difficulties in paying the mortgage down the line.Ah, thanks, just what I'm looking for. At the level of overpayment I'm looking at, it all looks pretty reasonable.
It will be treated as a lump sum but just mention it when lodging it to them that you wish to keep your term the same for flexibility. They used to send you out a letter afterwards acknowledging it as an "out of course payment"Thinking of releasing 10k. Is that even considered a lumpsum??
1. as we are on a fixed rate, would we get penalised for overpaying??
You will be penalised for any payments over and above the fixed rate for the term of the fixed rate.
2. can i just set up a direct debit or just pay here and there into the mortgage account if i have the correct details or would i need to contact aib to inform them of this beforehand??
You can make lump sum payments by various methods and I would discuss this with your bank the next time you are in. Remember you are on a fixed rate at the moment.
3. does the over payment come off the amount borrowed or does some of it go towards the interest??
If you are paying your mortgage in full any "overpayment/lumpsum" will be effectively coming off your principle thereby reducing your mortgage repayments
4. would overpaying be viewed negatively in anyway if going for another mortgage!?
Those type of mortgages were common enough at one time and you correctly understand the overpayment in that situationsome guy was paying his mortgage by 1/3 fixed and 2/3 variable. never knew this was even an option but it was something to do with overpayment too. think he was saying that he didn't get charged for the overpayment as he was over paying on the variable section?!
The banks need to account for and be satisfied with the sources of the deposit funds. It's very unlikely that they would allow any part of it to be borrowed. Much better to get a gift for the shortfall.much as i would never advocate borrowing on a credit card, is there any merit in borrowing the balloon required to bring mortgage below 80% on the credit card and then repay the credit card ASAP and benefit from 0.2% saving on mortgage ? Or a credit union loan for the shortfall ?
Hi just a query regarding overpaying on mortgage or transfering lump sum. I contacted aib re same and was told to transfer it to diff account, quoting my own account in the narrative. Is there a reason I can't just transfer directly to the account my direct debit goes to every month??
Thanks for the reply. Spent last two days ringing bank of ireland. They've now come to the conclusion that the iban can not be added. I've (hopefully) worked around it by using revolut to transfer a test amount to the mortgage account (40 euro) if this goes through without issue I'll transfer larger sums and overpayments on a regular basisI overpay mine through online banking; see [broken link removed] . Had to add the mortgage account as a payee (just entered the account number and it appeared) but that was it. Been doing this for a year; no problems so far.
When I rang them up I was told this wasn't possible, but the AIB support on boards.ie say it is, and it seems to work.
3. does the over payment come off the amount borrowed or does some of it go towards the interest??
If you are paying your mortgage in full any "overpayment/lumpsum" will be effectively coming off your principle thereby reducing your mortgage repayments
I was in AIB recently asking this very question. I'm on a variable rate.
I was told if I pay off a lump sum in the first year a large proportion would just be interest. I was surprised by this after reading some points on here, namely the above and one poster saying that a great guaranteed return on your money would paying off a lump sum of your mortgage.
Does anyone have experience with this?
This _sounds_ incorrect. Definitely my overpayments have just come off the principal.
Ya its doesn't sound right to me.
With your overpayments, do you do overpay monthly and if so did you keep the same term? Is the new repayment amount recalculated monthly also?
Just wondering how long it takes to recalculate. Say if I overpayed by 100 each month, would the recalculation happen before the next payment is due, adding to the over payment.