No, the AIB situation is unique.
If you have €50k cash, I don't see it being worthwhile paying it off against a 0% loan when it could save you 4.25%.
You would be left with €107k in the warehouse. Moving this to the active fund would cost you €4,000 interest a year and even more in repayments.
So you should try to pay it off the active mortgage. It seems that the banks are allowing this rather than setting the cash payment against the warehouse.
However, the bank has a right to review your split arrangement. And they may well deem you able to increase your repayments and so move some of the loan from the warehouse to the active mortgage.
But it's probably worth trying anyway - assuming you have no other lending.
Brendan