You mention that you have reduced the term on your mortgage. Did you explicitly ask Ulster to reduce the term? If your term has reduced there may not be any implicit overpayments as the recalculation of your term would be a function of your existing monthly payment amount. I.e., On a mortgage of €200k, 240 months left @ 2.6% a borrower would repay €1070 per month. If they overpaid 10% (€20k) the monthly repayment would fall to €963 OR the term would be reduced by about 30 months.
The above is how the mechanics of the calculations should work being in a fixed mortgage complicates it slightly. In the case of Ulster Bank your monthly repayment will not change. You will in effect continue to implicitly overpay your mortgage. In essence everything is "fixed" in an Ulster Bank fixed mortgage bar the outstanding balance.
I don't believe your actions will trigger a potential early repayment fee. It would be a bit rich of Ulster to offer fee free overpayment only to snare you on the monthly repayments. I asked this over the phone, though I'm not sure the nice Scot on the otherside grasped the question fully, they seemed adamant the implicit overpayment would not trigger a overpayment fee calc. Likewise I've never heard or seen anyone on here raising an issue of being charged in such circumstances.
Every year they recalculate my repayment based on the remaining term, so the repayment drops, I then adjust the repayment to return to the level it was at. So I will still pay it off ahead of schedule but if I need the flexibility, I can avail of it myself.
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