To help reduce the increased cost of credit, you have the option to make additional payments to your mortgage.
If you are on a variable interest rate you can make an overpayment to reduce your monthly repayment amount or your mortgage term without incurring an early repayment charge. An overpayment is where you make an additional payment which is part, or all, of the amount of your repayments that were deferred during the COVID-19 payment break.
If you are on a fixed interest rate, you can make additional payments up to the total amount of the repayments that were deferred during the COVID-19 payment break without being charged an early repayment charge. We may charge you an early repayment charge on any amount above the total amount of the repayments that were deferred during the COVID-19 payment break.
Here is an example to explain how this works in practice. Katie and Josh are on a fixed interest rate and have availed of a COVID-19 payment break for 6 months during which time they deferred 6 payments of €1,000 for each month of the payment break (A deferred amount total of €6,000) and have now started making monthly repayments again as the COVID-19 payment break has ended. If they have available funds they can lodge up to €6,000 to their mortgage account without incurring an early repayment charge. These additional lodgements, on top of their scheduled monthly repayments, may help reduce the cost of credit of the loan.
If you would like to make an overpayment on your mortgage account, please complete the attached application form and post it to us at Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2. DX 183, Dublin.
For further information on early repayment charges click here.