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How can I overpay my fixed rate mortgage?

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  • 10-05-2018 12:00pm
    #1
    Experience_day
    Registered Users Posts: 359 ✭✭


    I read that I'm allowed to overpay by 10% without penalty? Can you advise how I can go about this?

    Also how can I work out the breakage fee if I was to leave? (Mortgage drawn down in Nov 2017)

    Where would I get your funding figures so I can use your formula?

    This is how the funding fee compensation is calculated - it is equal to “C” where:
    C = Ax (R% - R1%) x D ÷ 365 and
    “A” = the amount repaid early (or the amount which is changed from the fixed rate to a new rate) averaged from the date of early repayment (or rate change) to the end of the fixed rate period to allow for scheduled repayments (if there are any) and interest charges.
    “R%”= the annual percentage interest rate which was the cost to us of funding an amount equal to “A” for the originally intended fixed rate period.
    “R1%”= the annual percentage interest rate available to us for a deposit of an amount equal to “A” for a period equal to “D”.
    “D” = the number of days from the date of early repayment (or rate change) to the end of the fixed period.


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


    Hi Experience_day,

    Thanks for your post.

    The maximum overpayment you can make on a fixed rate mortgage is 10% of your normal monthly repayment amount or €65, whichever is greater. For information on how to overpay your mortgage, please see here.

    To discuss a breakout fee you can contact our Mortgage Team directly on 01 6113333 who'll be happy to go through this with you.

    Thanks
    Tara


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