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Overpaying Fixed Rate Mortgage

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  • 26-02-2018 11:00am
    #1
    elainers
    Registered Users Posts: 113 ✭✭


    Hello, I know you can overpay 10% per month on a fixed rate mortgage but can you tell me if the overpayment comes off the capital or the interest + capital please? Cheers. 


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    #2
    Bank of Ireland: Tara
    Closed Accounts Posts: 2,346 ✭✭✭Bank of Ireland: Tara


    Hi elainers,

    Thanks for getting in touch.

    Overpayments are taken off the capital and although they don't have an impact on the interest rate charged on the mortgage, it will mean you pay less interest over time as it's reducing the capital owed on the account.

    Thanks,
    Tara


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    #3
    elainers
    Registered Users Posts: 113 ✭✭elainers


    Thanks for that. So if my repayment is €1,121pm and I pay €1,233 instead, will the extra €112 go straight to the capital? Or do I need to instruct BOI to do that? Thanks.


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    #4
    Bank of Ireland: Tara
    Closed Accounts Posts: 2,346 ✭✭✭Bank of Ireland: Tara


    elainers wrote: »
    Thanks for that. So if my repayment is €1,121pm and I pay €1,233 instead, will the extra €112 go straight to the capital? Or do I need to instruct BOI to do that? Thanks.


    You'll need to contact the mortgage team to set this up and how the overpayment is treated is covered off at that stage. The team are available on 016113333.

    Thanks
    Tara


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