Mortgage overpayment and amortisation schedule

[manyarecalled]

Let's say I have a fixed rate mortgage with a monthly payment of 1500, and I overpay it by 150 (the 10% maximum allowed at BOI). Is that 150 going to reduce my principal by 150? Or is some of it going to go towards the interest, depending on the current amortisation schedule?

On a related note, do banks here provide a detailed amortisation schedule when you take out a mortgage? (A table showing how much of each monthly payment goes towards interest, and how much towards the principal. Something like this.)

 

[resjudicata]

@manyarecalled The €150 comes off the principle. For the schedule, download Karl's mortgage calculator app and input your details. You can play around with future interest rates and overpayments, etc

 

[manyarecalled]

@resjudicata Awesome, thanks

 

[noose]

@manyarecalled You need to tell them to leave your current repayment unchanged rather than amend the repays to reflect the balance is reducing. That way your mortgage will pay down quicker, save thousands in interest and ultimately reduce the term

 

[resjudicata]

@noose You're better off letting the repayment be reduced and continue to overpay if you can. That way should your financial circumstances ever change you are only obligated to fulfill the lower repayment amount

 

[noose]

@resjudicata Yes defo however this won’t be an option for most fixed loans as the overpay is usually fixed at 10% of the actual repay so if the actual repay reduces the amount you can overpay will also