Flexible payment options
When your mortgage is with us you have a choice of flexible repayment options.
Talk to us at your local branch, online at aib.ie and over the phone at 0818 251 008.
You have a choice of flexible repayment options on a mortgage with
Taking a break from full payments or pay interest only
If you feel you need to take a break from repayments for a while, to cover maternity leave or home property improvements for example, we’ll look at that for you. You can apply for a complete break on your mortgage repayments for six months (it’s what we call a moratorium), or to pay interest only.
We may be able to give you a complete break from your mortgage for up to six months, or the option to pay interest only for 12 months. It all depends on you living in the home, having all your payments up to date with us, as well as some other information we need from you when you apply.
If we agree to it, we will then spread those rearranged repayments over the rest of your mortgage term.
If you are considering a repayment break because you are finding it hard to pay your mortgage, please visit to https://aib.ie/worried-about-payments.
Six month complete break in repayments:
If we agree to it, we will spread the six months’ worth of repayments you are taking a break from, over the rest of your mortgage term. This means that when you start paying again, your repayments will be a little higher to make sure that your mortgage will be repaid (together with interest) within its original term.
Or, if you like, you may be able to make your repayments interest-only for up to 12 months, in other words, not paying the capital part of your repayment. At the early stages of your mortgage, the interest portion of your repayment is usually higher than the capital portion.
Then after 12 months, your repayments will be a little higher to make sure that your mortgage will be repaid (together with interest) within its original term.
To apply for either of these options, fill in the Payment Break Form and return it to your Mortgage Advisor or drop it in to any of our branches.
Reduce your monthly mortgage repayments
You can reduce your monthly repayments by extending the term of your mortgage. You can apply using the Reduced Repayment Application Form and send it to: AIB Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2 DX 183.
Own your home sooner by paying more off your mortgage. You can pay more than your normal repayments off your mortgage with an extra monthly payment or a lump sum payment, or both. Try our Overpayment Calculator to see how much you could save.
Increase your monthly repayment amount
To make an extra monthly payment to your mortgage, you can set up another monthly standing order to your mortgage account through AIB Internet Banking or you can fill out the Overpayment Form. We will reduce the mortgage loan term because of the increase in your monthly repayments to your mortgage.
Make a lump sum payment to your mortgage
You can make a lump sum payment to your mortgage. You can do this through AIB Internet Banking or by filling out the Overpayment Form.
On the Overpayment Form you can choose between two lump sum payment options;
- Pay a lump sum and reduce your monthly repayment amount
Your monthly mortgage repayments will reduce in line with the reduced balance of the account. The remaining term and interest rate will stay the same.
- Pay a lump sum, maintain current monthly repayments and reduce your mortgage term
Your mortgage loan term will be reduced to keep the monthly repayments at approximately the same level as they were before the lump sum payment. The interest rate stays the same.
If you are on a variable rate you can increase your monthly repayments or make extra payments as an overpayment. If you are on a fixed rate, we may charge you an early breakage cost when you make an overpayment.
All parties to the mortgage must sign the Overpayment Form.
When you have filled in the Overpayment Form please email us at firstname.lastname@example.org or send it to AIB Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2. DX 183, Dublin.
Mortgage Overpayments following a Covid 19 payment break
If you are in a position to continue or go back to making payments it is in your best interests to do so as the cost of credit may increase because of the payment break.
To help reduce the increased cost of credit, you have the option to make additional payment(s) 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 amount of the payment break without being charged an early repayment charge. [We may charge you an early repayment charge on any amount above the total of repayments that were deferred during the payment break.]
Here is an example to explain how this works in practice. Katie and Josh are on a fixed rate and they 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 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, click here to download our Covid-19 Overpayment form and once completed, please 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.
Manage your application with My Mortgage
Once you have applied for a mortgage, we’ll make all the next steps as easy as we can for you. We’ll provide you will access to My Mortgage which lets you control the rest of your application on your mobile, tablet or desktop, in your own time.
Through My Mortgage you can see the documents required to support and progress the application. It also provides the ability to upload documents, to review and download your Approval in Principle plus other documents and has a message function to contact one of our Mortgage Advisors whenever you need any help.