reduce term of mortgage

When I make lumpsum payments into my PTSB tracker mortgage account, I always bring in a written document signed by mortgage holder (me) in which I state that I want the mortgage capital to be reduced and that I want to keep my repayments unchanged.
When I do this, they send out a statement to confirm the reduction in capital and the new term (that is also recalculated).

If you do not specify what you want to do with your overpayments or your lumpsum payments I guess they should ask?
 
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Some lenders will not ask and will just lodge any overpayments into the mortgage account as a "float" but not offset it against capital. You are doing the right thing in getting everything down on paper to avoid confusion and to deal with it if it does arise.
 
AIB do not automatically reduce the amount/month. In fact, they do the exact opposite. When I made enquiries about making over-payments, they stated that I had to send a covering letter with each payment stating whether it was the monthly repayment amount or the term that I wanted reduced. I had already made the first payment (without stating which of the two choices I had selected) and they automatically reduced the term. I had to write and ask them to change it to a reduction in the monthly amount.
 
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