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Overpaying on a mortgage

  • 03-02-2017 7:41pm
    #1
    Galwayguy35
    Registered Users, Registered Users 2 Posts: 16,904 ✭✭✭✭


    I have a 35 year mortgage and would like to take a few years off it by paying a bit more every month.

    I'm on a tracker so I was wondering is it a bit different to someone who wants to overpay on a variable loan?


Comments

  • #2
    Bank of Ireland: Nicola
    Closed Accounts Posts: 735 ✭✭✭Bank of Ireland: Nicola


    Galwayguy35 wrote: »
    I have a 35 year mortgage and would like to take a few years off it by paying a bit more every month.

    I'm on a tracker so I was wondering is it a bit different to someone who wants to overpay on a variable loan?
    Hi Galwayguy35, thanks for getting in touch. 

    We've some information on mortgage overpayments here, I'll just need to check if the same process applies for a tracker and will let you know as soon as I've an update.

    Thanks
    Nicola


  • #3
    Avatar MIA
    Closed Accounts Posts: 6,750 ✭✭✭Avatar MIA


    Galwayguy35 wrote: »
    I have a 35 year mortgage and would like to take a few years off it by paying a bit more every month.

    I'm on a tracker so I was wondering is it a bit different to someone who wants to overpay on a variable loan?
    Isn't a tracker a version of a variable loan, in that the interest varies (is variable) dependent on the EU interest rate (rather than some senior bank official). If you overpay, the balance on which the interest rate is applied will reduce.

    If it is one of the gold plated tracker mortgages they'll bite your hand off.


  • #4
    Galwayguy35
    Registered Users, Registered Users 2 Posts: 16,904 ✭✭✭✭Galwayguy35


    Avatar MIA wrote: »
    Galwayguy35 wrote: »
    I have a 35 year mortgage and would like to take a few years off it by paying a bit more every month.

    I'm on a tracker so I was wondering is it a bit different to someone who wants to overpay on a variable loan?
    Isn't a tracker a version of a variable loan, in that the interest varies (is variable) dependent on the EU interest rate (rather than some senior bank official). If you overpay, the balance on which the interest rate is applied will reduce.

    If it is one of the gold plated tracker mortgages they'll bite your hand off.
    I was reading up on it myself and from what I could gather no more than 10% extra per month  can be overpaid on a tracker but maybe I'm making a mistake on this.


  • #5
    gar32
    Registered Users, Registered Users 2 Posts: 1,024 ✭✭✭gar32


    If you want to pay more safe a bigger sum and pay it off. Their is a penalty but you would save that on interest in the long run.

    Good luck.


  • #6
    Bank of Ireland: Nicola
    Closed Accounts Posts: 735 ✭✭✭Bank of Ireland: Nicola


    Hi Galwayguy35, just a quick update for you.  I can confirm that the process outlined here applies to the tracker mortgage too. 

    For a regular overpayment, if your mortgage is on a fixed rate, the maximum monthly overpayment is 10% of the monthly mortgage repayment, or €65 euro, whichever is greater.

    Hope this helps, thanks.
    Nicola


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  • #7
    Bank of Ireland: Tara P
    Closed Accounts Posts: 573 ✭✭✭Bank of Ireland: Tara P


    mackes wrote: »
    Nicola
    I'm paying €100 overpayment on a BOI tracker mortgage. It was an Irish Nationwide one that went to BOI when IN folded. Is that how I am allowed make €100 overpayment?It is more than 10% of mortgage
    Hi Mackes,


    Thank you for your post here on Boards.ie.


    This would depend on your particular mortgage and if the mortgage is fixed or variable. To check this you would need to speak with a mortgage advisor, you can call our mortgage team on 016113333 and a representative will be happy to assist with this query.


    Thanks,

    Tara C 


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