Bank of Ireland fixed rate mortgage overpayment

Repaying your Mortgage early

When a fixed rate period applies to a Loan or part of a Loan we may suffer a loss if (1) you repay the Loan or part of it before the date you were due to pay it; or (2) you and we agree in writing to change the fixed rate to a new fixed Interest rate or to a variable interest rate; or (3) we oblige you to pay all amounts which you owe us following your default.

If we suffer such a loss you must pay us compensation when we ask you to pay it. Such compensation will be equal to “C” where:

C = A x (R%-R1%) x D ÷ 365, and

“A” = the amount repaid early (or the amount for which the fixed rate is changed 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.

Here is a worked example: Let us assume you wish to repay €100,000 on a fixed rate before the fixed rate period ends.

“A” = €100,000, “R” = 5%, “R1” = 3%, “D” = 2 years or 730 days:

C = €100,000 x (5%-3%) x 730 ÷ 365

So, C = €100,000 x 2% x 730 ÷ 365

C = €4,000

If you owe us compensation (the amount equal to “C”), we will add the amount to your mortgage loan account on the day after the fixed rate ends early for any of the reasons set out above. This means that interest will be applied to it at the same rate that applies to your mortgage loan. If you wish to pay the compensation amount, you can do so at any time by calling the Bank on 01 611 3333, Mon to Fri 9am-5pm, and arranging to pay the amount equal to “C”.

Regulatory Notice for Asset Covered Security Act

Bank of Ireland Mortgage Bank u.c. - Prudent Market Value for the purposes of the Asset Covered Securities Act, 2001 Regulatory Notice (Section 41(1)) 2004 [Irish Residential Property Assets/Mortgage Credit Assets]. For the purpose of satisfying publication requirements which apply under the above referenced regulatory notice, Bank of Ireland Mortgage Bank u.c. hereby gives notice that the Prudent Market Discount that applies in relation to Bank of Ireland Mortgage Bank u.c. for the purposes of that regulatory notice is currently 0.15 (in percentage terms 15%).

Bank of Ireland Mortgage Bank u.c. subscribes to the European Voluntary Code of Conduct on Pre-Contractual Information for Home loans. A copy of this Code is available on request from Bank of Ireland Mortgages.

The lender is Bank of Ireland Mortgages. Registered Office 40 Mespil Road, Dublin 4, DO4 C2N4. Lending criteria and terms and conditions apply. Applicants must be aged 18 or over.