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Fixed to Variable

  • 12-03-2019 1:24pm
    #1
    PCros
    Registered Users, Registered Users 2 Posts: 2,077 ✭✭✭


    I have a mortgage with EBS and I am currently on a fixed 1 year rate.

    Is it possible to go with a variable for 1 year, throw in a lump sum amount to pay off some of it and then revert back to a fixed rate the following year?

    Thanks!


Comments

  • #2
    Wheety
    Registered Users, Registered Users 2 Posts: 5,512 ✭✭✭Wheety


    Should be. You hoping to reduce the term or the monthly payment?


  • #3
    PCros
    Registered Users, Registered Users 2 Posts: 2,077 ✭✭✭PCros


    Wheety wrote: »
    Should be. You hoping to reduce the term or the monthly payment?

    I think the monthly payment I think or would you suggest term?


  • #4
    Wheety
    Registered Users, Registered Users 2 Posts: 5,512 ✭✭✭Wheety


    PCros wrote: »
    I think the monthly payment I think or would you suggest term?

    If you reduce the term, your payments will stay the same and it won't be easy to reduce them in future.
    If you reduce you monthly payment, you could always over pay and this would reduce the term anyway. And you could stop overpaying quite easily.

    This is general advice, you'd need to check any T&Cs of you own mortgage, especially around overpayments if you change back to fixed.


  • #5
    PCros
    Registered Users, Registered Users 2 Posts: 2,077 ✭✭✭PCros


    Wheety wrote: »
    If you reduce the term, your payments will stay the same and it won't be easy to reduce them in future.
    If you reduce you monthly payment, you could always over pay and this would reduce the term anyway. And you could stop overpaying quite easily.

    This is general advice, you'd need to check any T&Cs of you own mortgage, especially around overpayments if you change back to fixed.

    Thanks Wheety.

    I've sent my contact off an email now with a few questions.


  • #6
    Wheety
    Registered Users, Registered Users 2 Posts: 5,512 ✭✭✭Wheety


    Also, when your fixed term ends, you can pay a lumpsum straight away and then fix again. You don't have to wait a year.


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  • #7
    PCros
    Registered Users, Registered Users 2 Posts: 2,077 ✭✭✭PCros


    Ah that's interesting - I'll certainly bring that up.


  • #8
    Moving2017
    Registered Users, Registered Users 2 Posts: 623 ✭✭✭Moving2017


    You will automatically move to variable at the end of the fixed term.

    You can then pay the lump the next day, and sign up to the fixed rate again..

    There is no reason why you can't do this.

    This calculator is really useful for working out the impact of the lump sum: https://www.ccpc.ie/consumers/tools-and-calculators/mortgage-calculators/extra-mortgage-payments-calculator/


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