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Can I make an Overpayment on my Mortgage?

 

Yes, you can make an Overpayment on your mortgage. Below are the options available when making an unscheduled overpayment.
 
If you are on a fixed rate and ask to reduce the length of your mortgage, you will need to break out of your current fixed rate for which an early repayment charge may apply. A new interest rate will then need to be selected. If you choose to reduce your scheduled mortgage repayments only, you will not need to choose a new interest rate. For fixed rate customers please be aware that an early repayment charge may occur if you pay a lump sum or wish to reduce your mortgage term.
 
  • Pay a lump sum and reduce your scheduled repayment amount. Your scheduled mortgage repayments will reduce in line with the reduced balance of the account. The remaining term and prevailing rate of interest remain unchanged, and your scheduled repayments will adjust in line with any future rate increases or decreases, as normal.
  • Pay a lump sum, maintain current scheduled repayments, and reduce your mortgage term. Your mortgage loan term will be reduced to keep the scheduled repayments at approximately the same level as they were prior to the lump sum payment. If you are a variable rate customer, the prevailing rate of interest remains unchanged, and your scheduled repayments will adjust in line with any future rate increases or decreases as normal. If you are on a fixed rate and ask to reduce the term, you will need to break out of your current fixed rate for which an early repayment charge may apply. A new interest rate will then need to be selected. Any future request to extend the term will be subject to credit assessment.
  • Increase your monthly scheduled repayments and reduce your mortgage term. Your mortgage loan term will be reduced due to the increase in your monthly repayments to your mortgage. If you are a variable rate customer the prevailing rate of interest remains unchanged, and your scheduled repayments will adjust in line with any future rate increases or decreases as normal. If you are on a fixed rate and ask to reduce the term, you will need to break out of your current fixed rate for which an early repayment charge may apply. A new interest rate will then need to be selected. Any future request to extend the term will be subject to credit assessment.
From 14 October 2023, under all the fixed rates we offer, you can overpay up to €5,000 each calendar year for the term of your fixed rate and reduce your repayments, and we will not charge an early repayment charge up to this amount being applied. Any additional overpayments above €5,000, or early full redemption of your mortgage loan, may result in an early repayment charge if you are on a fixed rate. If you are on a fixed rate and ask to reduce the term, you will need to break out of your current fixed rate for which an early repayment charge may apply. A new interest rate will then need to be selected.

 

There are a few ways that you can make an overpayment for either a one off lump sum, or multiple overpayments.
  • In a Branch
  • AIB Phone and Internet Banking
  • AIB Mobile App
  • Pay by cheque
  • Bank draft from a non AIB account
  • Setting up a Standing Order with your Bank, or
  • Complete the Overpayment Form

 

When you have filled in the Overpayment Form, please return it to us via email to homemortgages@aib.ie or send it to AIB Home Mortgage Operations, Accounts Section, Unit 33, Blackthorn Road, Sandyford Business Park, Sandyford, Dublin 18, D18 E9T3

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