Quango Unchained wrote:
Who makes it easiest? Not AIB anyway.
I transferred money from an AIB current account to an AIB Mortgage account as a test and they decreased the monthly repayment. What I actually expected was for them to decrease the principal.
I inquired and was told that the default if you just transfer to a mortgage account is for the system to decrease the monthly payment. If you want them to decrease the principal you must inform them by letter or email with each adhoc transfer. Alternatively you can set up something regular by prior agreement where they do decrease the principal - however you must stick to the agreed amount every month and advise them again in writing should you wish to go back to paying the basic amount.
I don't see what the issue is here. You can just keep increasing your "overpayments" as your standard payment reduces if you want to pay off the mortgage early; eventually you will pay off the principal. It is more flexible this way, if your financial circumstances worsen in future, you might be glad of the lower standard payments...
I'd have thought the issue is clear: if the principal isn't being reduced by as much as tradtshirt intended, that could interfere with his ability to sell up in a negative equity scenario. We've lived through a sudden house price collapse.
The idea is that tradtshirt might get an offer on his house that would almost clear the mortgage, but he might owe just that little smidgen too much principal.
If I'm missing something, please point it out.