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Extra Monthly Mortgage Repayments

  • 28-03-2015 10:11am
    #1
    Grant Stevens
    Registered Users Posts: 101 ✭✭


    Hi there,

    I'd like to know what the default action is when someone makes an extra payment to their mortgage account via online payment facility. 

    Would it 

    a) reduce the monthly payments for all subsequent payments or

    b) keep monthly payments the same but reduce the term of the mortgage?

    Whether a or b is the default action, is there any way to change this default action with a one-time call or would BOI need to be notified of the preferred action each time an extra payment is applied?


    I would like to pay a bit more if/ when I have it but don't want to commit to this, hence no need to contact or write to BOI with specific instruction of such. Considering that interest is calculated daily (compounded quarterly) does it make sense to "drag & drop" funds to the mortgage account online periodically rather than accrue said funds over time (in another a/c) and make one extra annual payment for example?

    Thanks.


Comments

  • #2
    Bank of Ireland: Billy
    Closed Accounts Posts: 1,066 ✭✭✭Bank of Ireland: Billy


    Grant Stevens wrote: »
    Hi there,

    I'd like to know what the default action is when someone makes an extra payment to their mortgage account via online payment facility. 

    Would it 

    a) reduce the monthly payments for all subsequent payments or

    b) keep monthly payments the same but reduce the term of the mortgage?

    Whether a or b is the default action, is there any way to change this default action with a one-time call or would BOI need to be notified of the preferred action each time an extra payment is applied?


    I would like to pay a bit more if/ when I have it but don't want to commit to this, hence no need to contact or write to BOI with specific instruction of such. Considering that interest is calculated daily (compounded quarterly) does it make sense to "drag & drop" funds to the mortgage account online periodically rather than accrue said funds over time (in another a/c) and make one extra annual payment for example?

    Thanks.
    Hi Grant Stevens,

    Thanks for your post this morning.

    When paying a lump sum off a mortgage, the default action is to reduce the amount of your monthly repayments for the remainder of your mortgage term. If you would prefer to maintain your repayments and reduce the term of your mortgage instead, you can send a signed letter to FREEPOST, Bank of Ireland Mortgages, New Century House, IFSC, Lower Mayor Street, Dublin 1. Please ensure all parties related to the mortgage, sign the letter.

    We have information on mortgage overpayments and an overpayment calculator to see how much you can save here

    While we cannot offer financial advice on Boards, the Mortgage Team will be happy to help with your last question. The team are available on 01 6113333 from 8:30am - 5:30pm Mon - Fri.

    Thanks

    Billy


  • #3
    Grant Stevens
    Registered Users Posts: 101 ✭✭Grant Stevens


    Thanks Billy,

    I have another question you may be able to answer: does BOI allow mortgage holders to switch from a monthly to biweekly mortgage payment schedule?

    Thanks.


  • #4
    Bank of Ireland: Nicola
    Closed Accounts Posts: 735 ✭✭✭Bank of Ireland: Nicola


    Grant Stevens wrote: »
    Thanks Billy,

    I have another question you may be able to answer: does BOI allow mortgage holders to switch from a monthly to biweekly mortgage payment schedule?

    Thanks.
    Hi Grant Stevens,

    Thanks for your post.

    You would need to discuss this with one of our mortgage advisers, you can arrange a meeting with an adviser or request a callback here.

    Alternatively you can call them directly on 0818 200 339 (8am - 8pm Monday – Friday & 10am - 2pm Saturday).

    If there is anything else that I can help you with here please let me know.

    Thanks
    Nicola


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