Tracker Mortgage pay off early

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fifidoyle

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Hi, I was wondering if anyone would have any advice or guidance on my query. We (husband and I) have two tracker mortgages. 1st one we owe 42 thousand and the 2nd we owe 44 thousand they are with the same bank AIB (was ulster and moved to AIB by the back).
It was pure fluke in that we re mortgaged and at the time this is how the Ulster Bank did it.
So now we have a lump sum of money and would like to pay off our Mortgage. How do we go about this? Is there any bonus to having a tracker? Should we try to negotiate with the bank or will be be penialised for paying it off early.
I would appreciate any advice as I have no clue. :)
 
Just transfer the money to your mortgage accounts.

You are legally entitled to pay off the mortgages ahead of schedule without penalty.

There’s nothing to negotiate with the bank and zero chance of getting a discount.
 
Don’t just transfer, ring them first and ask for the redemption number and that you are going to fully pay off the mortgage.
 
We get free banking with aib because our mortgage is with the. Is it worth keeping a small amount unpaid to avail of this
 
aristotle said:
Don’t just transfer, ring them first and ask for the redemption number and that you are going to fully pay off the mortgage.
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And unnecessarily accrue interest for the two weeks it takes the bank to come up with a final redemption figure?

Nah, just pay off the outstanding principal balance

If there’s any accrued but unpaid interest, you can pay that off at a later stage.
 
Sarenco said:
Just transfer the money to your mortgage accounts.

You are legally entitled to pay off the mortgages ahead of schedule without penalty.

There’s nothing to negotiate with the bank and zero chance of getting a discount.
Click to expand...
Thank you
 
Hi fifi

Paying off your mortgages is probably the right thing to do. But it might be worth doing a Moneymakeover first to see if there are other suggestions for what to do with the money.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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It is worth contacting the bank in advance, firstly there may be sneaky fees added at the end, secondly they will want to know source of funds.

I had a UB tracker, when I enquired about redemption amount, they were adding a fee for paying early. So, I paid in slightly less than the total, and stated that I wanted it to reduce the term (not the capital). They recalculated my monthly payment, leaving only 1 month left. When that came out of my account, I had no longer “paid early” (according to the new recalculated schedule), so no sneaky fee!
 
The sneaky fee as you call it is usually a vacate fee re the deeds and was 35 euro recently when I redeemed UB mortgage, in fact they actually refunded it to me anyway afterwards for some reason. There is no actual fee for paying off a variable rate/tracker mortgage early.
 
Paid off AIB tracker mortgages a few years ago. There was no discount for paying off the buy to let tracker mortgages early.

Went into my local AIB branch and they did ask why I wanted to pay off tracker mortgages when the rate was so low. Glad I did with tracker rates now so high.

The AIB branch got the balance online which I paid off there and then in the branch. My bank statement has 'Mortgage close' and a month later there is 'Release charge fee' of 60 euro for each tracker mortgage.

The deeds arrived a few weeks later in the local branch where we collected them from, they are now with our solicitor for safe keeping. We are mortgage free and the solicitor has the deeds for when we sell the properties.
 
ginslia said:
It is worth contacting the bank in advance, firstly there may be sneaky fees added at the end, secondly they will want to know source of funds.

I had a UB tracker, when I enquired about redemption amount, they were adding a fee for paying early. So, I paid in slightly less than the total, and stated that I wanted it to reduce the term (not the capital). They recalculated my monthly payment, leaving only 1 month left. When that came out of my account, I had no longer “paid early” (according to the new recalculated schedule), so no sneaky fee!
Click to expand...
Thank you
 
Monbretia said:
The sneaky fee as you call it is usually a vacate fee re the deeds and was 35 euro recently when I redeemed UB mortgage, in fact they actually refunded it to me anyway afterwards for some reason. There is no actual fee for paying off a variable rate/tracker mortgage early.
Click to expand...
I redeemed my UB mortgage recently but no fee was mentioned. I did have to chase them up on getting the deeds sent out though, once I did I got them within 3 days. I have to say, I found their mortgage team in Edinburgh very helpful and easy to deal with.
 
thedaddyman said:
I redeemed my UB mortgage recently but no fee was mentioned. I did have to chase them up on getting the deeds sent out though, once I did I got them within 3 days. I have to say, I found their mortgage team in Edinburgh very helpful and easy to deal with.
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I didnt notice the fee until they wrote to me looking for bank details to refund it to! Maybe they sorted out that issue and stopped charging it as it's only hassle then trying to refund it, they couldn't make it go to N26 as wouldn't work for them! Had to provide a 'proper' bank account details.

Still no sign of my deeds though, mind you I haven't chased them, maybe I need to make a call.
 
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