Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortage - Balance versus principle

  • 19-05-2017 3:43pm
    #1
    yop
    Moderators, Home & Garden Moderators, Regional Midwest Moderators, Regional West Moderators Posts: 16,724 Mod ✭✭✭✭


    Hi
    I have a mortgage with Danske. So I made a lump sum 2 months back.
    So for example the mort was 100k, I paid a lump of 30k

    First off I noticed after a week that the outstanding balance was 70k but the principle was 100k.
    I rang them and they said I needed to write a letter to tell them that I wanted "we want this sum to come off the principle to reduce the term of the loan."
    Which was mental anyway, so people need to be wary of that.

    So I got a letter then a week later and they said it had reduced the term to finish 10 years from now.

    But when I look at the details online the Principle is still 100k.

    My ask is if this is correct and what is the actual interest calculated against?
    I emailed them Monday last and I got the same letter out that I got about the Outstanding been 70k and the amount been 2027.


Comments

  • #2
    [Deleted User]
    Posts: 17,728 ✭✭✭✭ [Deleted User]


    yop wrote: »
    ..........

    My ask is if this is correct and what is the actual interest calculated against?..............

    Should be calculated off the amount outstanding which is €70k in your example.

    With BOI I rang them, told them I wanted all extra payments to come off the principle and the monthly amount not to decrease after I overpaid.

    I think they had to do something on their side to stop my monthly amount decreasing after I overpaid.

    Some folk might be happy to overpay a bit now and keep the same term with less monthly amount being taken, banks obviously make more on the interest in that case.


  • #3
    yop
    Moderators, Home & Garden Moderators, Regional Midwest Moderators, Regional West Moderators Posts: 16,724 Mod ✭✭✭✭yop


    Augeo wrote: »
    Should be calculated off the amount outstanding which is €70k in your example.

    With BOI I rang them, told them I wanted all extra payments to come off the principle and the monthly amount not to decrease after I overpaid.

    I think they had to do something on their side to stop my monthly amount decreasing after I overpaid.

    Some folk might be happy to overpay a bit now and keep the same term with less monthly amount being taken, banks obviously make more on the interest in that case.

    Thanks v much. I'm overpaying every month by 100 euro. Want to get this down by another couple of years. Then start paying for kids college!! :D


Advertisement