You can make additional payments, which will reduce the mortgage loan balance, even if you were on a Covid-19 payment break.
If you can continue making payments it is in your best interests to do so as the cost of credit may increase because of the payment break.
If you are on a variable interest rate, you can make additional payment(s) to your mortgage account as an overpayment to reduce your monthly repayment amount, or to reduce your mortgage term, without incurring an early repayment charge. An overpayment is where you make additional payment(s) towards part, or all, of the total amount of your repayments that were deferred during your COVID-19 payment break or where you make additional payment(s) in excess of the total amount deferred.
If you are on a fixed interest rate, you can make additional payment(s) to your mortgage as an overpayment to reduce your monthly repayment amount, or to reduce your mortgage term. You can currently make additional payments up to the total amount of the repayments that were deferred during your Covid-19 payment break without incurring an early repayment charge. This is subject to change, we update this page regularly, and you will find the latest information here. We may charge you an early repayment charge on any additional payment(s) made above the total amount deferred.
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 call us on 0818 565 500 to discuss your options or 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.