Mortgage Overpayment Limits

[garyn]

We are looking to buy a home and so far have pre approval from BOI and PTSB (AIB to come soon we hope)

From what they have quoted me if we watch our spending I know most months we would able to to make an overpayment of at least 25%. But not every month if we needed to fix the car, buy oil, etc….

I’m not very knowledgeable with all this stuff so I was looking at the variable rate mortgages so we can make overpayments but my brother in the UK is able to make overpayments while on a fixed rate of up to 10% of the remaining sum to be payed. However I cannot find any info for ptsb or AIB and boi say it’s only 10% of your monthly repayment which is much smaller.

Are there any banks in Ireland that allow for larger monthly overpayments, or am I stuck going with the variable rates?

I guess it’s also an option to get smaller fixed rate times (3 years or so) and then make lump sum payments from savings before opening another fixed term but I’m not sure if this will save money compared to a variable rate in the long term.

Any advice would be super helpful.

 

[bbryup]

@garyn PTSB allow unlimited overpayment on a fixed rate. If that’s your plan I’d lean towards them.

 

[diamondkut]

@bbryup Let’s say my mortgage with PTSB is €500 and I decide to transfer in an additional €200 what’s happens?

 

[chirpyluna]

@diamondkut it will just get returned. you have to fill out a form first stating the amount you are overpaying.

 

[gentilerain]

@chirpyluna No you don't, you have to do that to have it deducted from the capital

 

[garyn]

@bbryup Really? That doesn’t sound right?

 

[bbryup]

@garyn Yes, really. Had a loan offer with them and confirmed.

Search this subreddit, as others have confirmed it also.

 

[devastatednate]

@garyn It is right. I'm currently over paying by 1k a month with PTSB.

 

[jayleen]

@bbryup Wow.. that's pretty cool.

 

[telemachus1]

@garyn BoI = 10% overpayment on monthly repayment.

AIB = €5,000 per year overpayment before potential penalty.

PTSB = Apparently no limit to overpayment amounts but are a bit paper-workey for it.

EBS = Have ended overpayments as of January 2024, but allow shortening of your term to increase your payments.

 

[gentilerain]

@telemachus1 No paperwork with PTSB if you're happy to have it in the credit account. If you want a monthly recurring overpayment you need to fill out a form but can overpay lump sums by transferring the money

 

[telemachus1]

@gentilerain Oh fabulous! We’re just about to decide on which AIP to move ahead with and this definitely tipped the scales to PTSB.

 

[isaacs2311]

@telemachus1 I've just started overpaying small amounts with aib, I added mortgage account to app and any spare change before payday going off mortgage, I won't be anywhere near 5k a year allowed but tipping away tenner here 50 there. It will all add up over time.

 

[singerum]

@garyn PTSB you have to fill in a form and send it in to the mortgage centre (or hand in to the branch) and they adjust your monthly direct debit then.
We were with Ulster Bank where you could do it all yourself online, PTSB is a bit more clunky to set up but works fine once it's sorted. We overpay about €200 per month

 

[resjudicata]

@garyn If you search overpayment on this sub there are many threads about this, AIB introduced 10% overpayment on fixed rate relatively recently

 

[ethonhauler]

@resjudicata AIB allow 5k overpayment yearly before they calculate a charge

So there is no limit as such, just a limit before a POTENTIAL charge, the charge may be €0

 

[garyn]

@ethonhauler I don’t like the ambiguity of this “potential” charge. Feels like finger in the wind nonsense.

 

[ethonhauler]

@garyn It's all laid out in their T&C's

 

[sanj79]

@garyn Depends on the bank, I believe with BOI you can overpay as much as you want if you're on a variable rate, but it's limited to 10% over your monthly payments during the fixed period.