Yes - I've done this in the past. You can generally make arbitrary accelerated lump sum or regular capital repayments on a variable/tracker rate mortgage. Certainly a lender cannot charge an owner occupier a penalty fee for accepting such accelerated capital repayments. Some lenders may set a lower limit on the size of the lump sum that they will accept. Some may have rules on what sort of "increased" repayments (i.e. increased capital amount) you can make. And so on. And it's always prudent to make clear your intentions in writing to your lender (e.g. when making lump sum or regular additional capital repayments tell your lender explicitly what you are doing). If you make a lump sum capital repayment you will often have the option of keeping your regular repayments at the same level thereby reducing the effective term of the mortgage or reducing these so that the term remains the same as originally agreed. The former yields the highest interest cost savings and is often a good idea if you can afford it.
You're being a bit too easy on the banks. You're entitled to pay off as little extra as you want, as often as you want. They can only charge you a penalty if you're on a fixed rate. With variable and tracker rates it's up to the borrower - loads of us are doing this on a monthly basis.I appreciate that the bank may not accept this every single month and may require me to present a minimum amount each time (such as 5% of the mortgage total) - but this would be ok - all I would do would be save until I would have this amount then take it along to them and ask for it to be taken off the mortgage total.
As far as I know some lenders will not accept any lump sum capital repayment below some minimum amount. I seem to recall some lenders setting the bar at €1K.
With AIB, you can view your Mortgage accounts on-line in the same way as any other a/c, and transfer into them as you wish (see under Add New Account). If theres 2 people involved in any of the mortgages, then all you need is a Multi-view form from any branch, and thats it.You're entitled to pay off as little extra as you want, as often as you want- loads of us are doing this on a monthly basis.
With AIB, you can view your Mortgage accounts on-line in the same way as any other a/c, and transfer into them as you wish (see under Add New Account). If theres 2 people involved in any of the mortgages, then all you need is a Multi-view form from any branch, and thats it.
They make for depressing viewing next to your measley current a/c, but that encourages you to chip away at it
You're entitled to pay off as little extra as you want, as often as you want. They can only charge you a penalty if you're on a fixed rate. With variable and tracker rates it's up to the borrower - loads of us are doing this on a monthly basis.
....I'd love to have an axe rather than this blunt butter knife!!but that encourages you to chip away at it
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