I want to make a one off overpayment from my AIB current account to my AIB mortgage, keeping the monthly payments the same and reducing the term. Seeing as this appears not to be the default action in the case of an overpayment, I need to communicate this to them at the same time I make the payment.
According to the mortgage bank I have two options, firstly visit the bank in person and lodge the amount in question to my mortgage account there and then, and at the same time give them a letter to fax to the mortgage bank giving them the instructions, which seems fraught with problems to me, or secondly get a bank draft and send it to them by post together with the letter which to me on the face of it seems a better way of making sure the connection is made between the payment and the desired outcome.
Now, I don't really know much about bank drafts (lived in mainland Europe for most of my life before moving here) but I would like to know what the potential pitfalls are with something like this. Are bank drafts made out to a particular payee, just like cheques? What happens if it gets lost in the post or worse, stolen? Would there be any point in sending it by registered post?