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Paying off AIB mortgage

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  • 31-07-2013 7:28pm
    #1
    2012paddy2012
    Registered Users Posts: 2,880 ✭✭✭


    have 5 yrs to go on aib standard aib mortgage....

    if I pay it off will I be subject to a fee?

    is there a fee to get your house deeds back

    or are there are hidden charges involved in this simple procedure


    thks

    Paddy


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    #2
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    2012paddy2012 wrote: »
    have 5 yrs to go on aib standard aib mortgage....

    if I pay it off will I be subject to a fee?

    is there a fee to get your house deeds back

    or are there are hidden charges involved in this simple procedure


    thks

    Paddy

    All depends on the type of mortgage and whats in your contract.
    If its tracker or variable, most likely no.
    If its fixed rate, most likely yes there will be a penalty.

    If its a tracker rate, see if its more beneficial for you to put it in an high interest instant access account.


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    #3
    2012paddy2012
    Registered Users Posts: 2,880 ✭✭✭2012paddy2012


    Scortho wrote: »
    All depends on the type of mortgage and whats in your contract.
    If its tracker or variable, most likely no.
    If its fixed rate, most likely yes there will be a penalty.

    If its a tracker rate, see if its more beneficial for you to put it in an high interest instant access account.

    Standard variable ... Prob no fee to pay off in full I reckon. Fee for house deeds returned? I wondered


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    #4
    Heisenberg1
    Closed Accounts Posts: 2,511 ✭✭✭Heisenberg1


    2012paddy2012 wrote: »
    have 5 yrs to go on aib standard aib mortgage....

    if I pay it off will I be subject to a fee?

    is there a fee to get your house deeds back

    or are there are hidden charges involved in this simple procedure


    thks

    Paddy

    Best advice I can give you is ask AIB these questions.


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    #5
    2012paddy2012
    Registered Users Posts: 2,880 ✭✭✭2012paddy2012


    your correct Great Advice. I wonder if I move from AIB to my credit union who now offer a mortgage redemption loan ....will I lose my TRS?


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    #6
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    2012paddy2012 wrote: »
    your correct Great Advice. I wonder if I move from AIB to my credit union who now offer a mortgage redemption loan ....will I lose my TRS?

    Yes you'd lose your TRS and the CU rate will be higher than your mtg rate. There's no charge for paying off a variable rate mtg. There may be a small charge to vacate the mortgage deed approx €50/60 but if you can afford to pay it off now you'll save yourself 5 yrs interest on the amount o/s


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    #7
    2012paddy2012
    Registered Users Posts: 2,880 ✭✭✭2012paddy2012


    killers1 wrote: »
    Yes you'd lose your TRS and the CU rate will be higher than your mtg rate. There's no charge for paying off a variable rate mtg. There may be a small charge to vacate the mortgage deed approx €50/60 but if you can afford to pay it off now you'll save yourself 5 yrs interest on the amount o/s

    Why do I lose trs? It's a mortgage redemption. Loan ?


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    #8
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    2012paddy2012 wrote: »
    Why do I lose trs? It's a mortgage redemption. Loan ?

    Because you are taking out a new mortgage loan and TRS is no longer available. There is no longer such a thing as a new 'Qualifying Loan'... When you pay off your AIB mortgage the TRS ceases. You can't apply for TRS on the new loan because it's not available on new loans anymore


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    #9
    2012paddy2012
    Registered Users Posts: 2,880 ✭✭✭2012paddy2012


    killers1 wrote: »
    Because you are taking out a new mortgage loan and TRS is no longer available. There is no longer such a thing as a new 'Qualifying Loan'... When you pay off your AIB mortgage the TRS ceases. You can't apply for TRS on the new loan because it's not available on new loans anymore

    Your a mountain of information!!! Cheers


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    #10
    2012paddy2012
    Registered Users Posts: 2,880 ✭✭✭2012paddy2012


    One other!!! Have this mortgage over 4 yrs. I think trs only lasts 7!?

    If so , can you see any pit falls in paying off my mortgage with aib.

    Funding that by a credit union loan? Present standard rate aib is 4.4%
    Credit union offering 4.25 and unlikely to raise rates ... Not sure about aib intentions in this regard !!( will not be lowering away!)

    I lose whatever I have on trs.... Credit union tell me no need for life cover as its included in the credit union loans .... I pay 145 a year for this .... Not having to pay that puts me well ahead .... Even taking into account the very small trs I get anyway .... I can't see any pit falls ..... Can anyone else!!!?

    Many thanks

    Paddy


    Addittional I see this on googke re trs..

    If you took out a mortgage between 1 January 2004 and 31 December 2011,your entitlement to relief will continue until the end of 2017. (After the first 7 years you will be no longer classed as a first time buyer)

    This would seem to apply to me as I bought my house owner occupier around 2008. It seems I am entitled to trs till 2017... I have Mortgage around 35k and get about 15 euro a month ... It's a nice bit!


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