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

As long as you are on a rate of 2.15% there will be no fee. Unless the current rates dropped lower than that. Which they haven't and probably won't.
 
Update:

I received this letter from AIB (picture attached). It says that the break fee may apply if I overpay by let's see €6000. Am I right?

@icb the lodgement date is still within 2024 so I believe I am on the safe side to overpay in 2025.
 
They say "MAY result in an ERC" after you use up the annual limit. As many has said to you at 2.15% you have, you can work out the numbers to satisfy yourself and what you will find is pretty much guaranteed you won't be charged (Go back to the start of this discussion thread, there are examples of how to calculate it based on the AIB mortgage regulatory information sheet formula)

https://aib.ie/our-products/mortgages/Home-Mortgages-Regulatory-Information
 
Hi folks..... I got a 5 year fixed green mortgage from AIB in Sept 2023 at 3.65 %

Based on latest rates thread the rate is now down to 3.2%

1) Can I contact AIB a request a new agreement without any penalty ?

2) I am now also about to make an overpayment of 5k based on the current limit. Should I pay that asap or if I can switch without a penalty should I sort that first before making an overpayment ?

Any help appreciated
 
MoneyBall2020 said:
1) Can I contact AIB a request a new agreement without any penalty ?
Click to expand...
You are ~1.5 years into your fixed term. AIB will compare your existing rate (3.75%) to their current 3 & 4 year rates (4.55 & 4.6%). This means there should be no ERC for you...but always to get it confirmed.

MoneyBall2020 said:
2) I am now also about to make an overpayment of 5k based on the current limit. Should I pay that asap or if I can switch without a penalty should I sort that first before making an overpayment ?
Click to expand...
I don't think the €5k limit really matters here. Pay it off now if you have the cash available.

Your next steps should be:
1. Request the ERC for the full balance of your mortgage
2. Complete the mortgage amendment form (link below)
3. Once confirmation of the break fee is received, sign, scan and send the form to AIB

This will start a new 5 year term at 3.2%

 
Great ...Thanks for that . Will contact them about the ERC and go from there.
 
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