Overpayment / re-fix flexibility of AIB's green 5yr fixed rate (and some other rates)

DubMark said:
Rang AIB and they said if I transfer additional money to mortgage account online I would lose my rate and have to re-fix at the new current Green Mortgage rate of 3.1% so looks like I can't overpay in any way without giving up my rate
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The AIB person is mistaken or misunderstood you.

As the others here have said:
  • Ask them what the Early Repayment Charge (ERC) would be if you made an overpayment by €X
    • It will almost certainly be zero in your case
  • Once you get that quote for the ERC, you just need to transfer the overpayment amount (€X) from your current account to your mortgage account. You can do it via online banking.
Making an overpayment will not cause you to lose your current fixed interest rate.
 
Because of AIB's rate changes of 3rd February 2023, this quirk (overpaying your mortgage without penalty) no longer exists for borrowers who take out a mortgage now on AIB's regular 5-year fixed rate.

But it still exists on their:
  • green 5-year fixed rate
  • high-value 4-year fixed rate
  • 3-year fixed rate
for anybody taking out a mortgage now (for the foreseeable future).

And if you fixed with AIB before October 2022 (regardless of how long you fixed for), your break fee is quite likely to be zero – which means that you can overpay your mortgage without penalty. But you should always ask AIB for a break fee quote before making an overpayment.
 
Hello,
I am back here as looking to pay another lumpsum amount. But concerned that a break fee will be applied after increase in AIB rate.

I have AIB 5 years fixed at 2.15%.
Any idea if a break fee will be applied?
 
Cheers folks - just to confirm I got the letter and ERC was €0
 
Just an enquiry. Have just got a 10k lumpsum to pay off our mortgage but we have the 5year fixed rate of 2.35% with AIB. From what I know there will be no break fee but the same mortgage rate is now 4.15%. However we only owe 55k and have approx 5 years left on the mortgage. Would we just be better to put the money away for now? There is a chance that we will receive another 10k towards the mortgage next year so between our own repayments and the additional 20k the outstanding balance next year would be approx 25k? The interest will be low but we were stuck paying a 4.85% until 3 years so I am reluctant to pay more than I have to to the bank!
 
Cathbarr said:
The interest will be low but we were stuck paying a 4.85% until 3 years so I am reluctant to pay more than I have to to the bank!
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I'm struggling to understand your question. The sooner you pay, the more interest you'll save. What's the reference to 4.85%?
 
Cathbarr said:
Just an enquiry. Have just got a 10k lumpsum to pay off our mortgage but we have the 5year fixed rate of 2.35% with AIB. From what I know there will be no break fee but the same mortgage rate is now 4.15%.
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If you pay a lump sum (no matter how large) off your mortgage, you will not lose your 2.35% rate. That rate (2.35%) will be your mortgage interest rate until the end of your 5-year fixed-rate period.

Note that overpaying your mortgage/reducing your balance may not be the best use of your money. Your priorities should usually be:
  • Paying off expensive debt (credit cards, personal loans, car loans, etc.)
  • Building up an emergency fund in a savings/current account (3 to 6 months' living expenses)
  • Saving money for any expenses you will have over the next few years (kids; buying a car; childcare; home renovations; adult children going to college, etc.)
  • Maxing out your pension contributions (very large tax relief is given)
  • Overpaying your mortgage
in approximately that order. Consider posting a thread about your situation in the Money Makeover forum.
 
RedOnion said:
It has the opposite effect. Increase in rates since you fixed means no break fee.
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It's been over a week today and no break fee letter received from AIB.
Let's assume there is a break fee on my green mortgage with AIB. What would be the break charges if I add a lump sum of 20k?
 
masterboy123 said:
Let's assume there is a break fee on my green mortgage with AIB. What would be the break charges if I add a lump sum of 20k?
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It should be zero.
You've fixed at a rate lower than any of the rates they currently offer.
I'm not sure if it works with AIB, but try give them a call. Once the break fee is generated, they should be able to see it even if you haven't received the letter yet.
 
Just an update:
I received a break fee of zero today.
I am with AIB 5-year Green rate.
I transferred lumpsum from AIB current account to the mortgage account using online banking.
Quite happy that the monthly mortgage will reduce by €100 or so.
Thank you all.
 
Anyone know if AIB allow you to port your mortgage when selling your house and buying another. Would like to keep my current mortgage on the low rate have locked in and the balance at the current rates. Let’s assume new house is also atleast a B3. I’ve googled it and only see reference to it in NI.
 
I have never heard of this in relation to AIB. You need to get out your mortgage agreement and see if such a feature is mentioned. Even if it isn't you have nothing to lose by contacting AIB and asking them if they will let you do this.

I asked last year for info about Bank of Ireland's "bring your Bank of Ireland fixed rate with you" feature but I never got any replies.

"bring your Bank of Ireland fixed rate with you" – any experience of this mortgage feature?

I spotted the following on this Bank of Ireland webpage (and also here, in the T&Cs): Movers: You can bring your Bank of Ireland fixed rate with you to your new mortgage loan without penalty subject to drawing down your new mortgage within 6 months of redeeming your old Bank of Ireland...
www.askaboutmoney.com
 

Thanks will call them Monday and update this thread.
 

Hi Paul just to close this out rang AIB and they do not allow this.
 
@masterboy123 can you keep your original green rate or are you put on their current rate?
 
Do you have an option to keep paying the same monthly fee and reduce your term with the lump sum payment?

Last year I went on to a Green AIB mortgage.. I think my rate is 2.15%.. I will call tomorrow to see if the overpayment fee is zero..
 
masterboy123 said:
I have my original green rate 2.15%.
Has it changed now?
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Sorry I wasn't clear. Your repayments have reduced. I would like to use my over payment to reduce the term and keep my repayments the same. To do this I think we would have to give up our rate and go on the current rate!
 
Cathbarr said:
Sorry I wasn't clear. Your repayments have reduced. I would like to use my over payment to reduce the term and keep my repayments the same. To do this I think we would have to give up our rate and go on the current rate!
Click to expand...
Use the overpayment form and select that option
 
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