Paying more off fixed rate

[misstealeaf]

Hi. I’m in line for prevailing tracker redress. By reducing my balance my mortgage repayment should reduce by c170 a month. I’m currently on a fixed rate with about 3 years left. Requested break cost recently and wouldn’t make much sense to take it.
Anyway my question is does AIB allow for increased payments of a certain % each month on fixed? Ideally I’d just keep paying what I’m used to and knock some years off my remaining term. But not if I’ll be penalised for it. I couldn’t find any info online about what their approach is on this.
Thanks

 

[Brendan Burgess]

I don't think that AIB does allow such early repayment without the penalty.

However, if you are paying just €170 per month, the penalty won't be much and it's probably worth it.

Brendan

 

[misstealeaf]

Thanks Brendan. Will have to look into it. There’s an argument I think to allow me break out of fixed rate for free as (1) they’re essentially altering the mortgage account by reducing the principal (2) i had budgeted a set amount a month to pay off my mortgage and now I can’t do that cos the cost has reduced and I’ve left over cash.
Who knows. I’m probably biased. But be interesting to see what happens.

 

[misstealeaf]

To articulate what I mean about more clearly- it two years ago when I was making a Decision to fix my mortgage (based on the repayments and principal balance outstanding) I may have made a different decision and not fixed had I known my balance and related repayment were to be reduced by c35k.