KBC existing customers can get lower rates

Discussion in 'The Fair Mortgage Rates Campaign' started by Brendan Burgess, Dec 1, 2016.

  1. Brendan Burgess

    Brendan Burgess Founder

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    See attached

    Contact one of KBC's valuers
    Pay them €126.97 to value your home.
    Open a current account with KBC if you don't have one - to get the best rate.
    Choose a rate - always choose a variable rate (Rates assuming a current account)
    <50%: 3%
    <60%:3.05%
    <80%: 3.1%
    <90%: 3.5%
     

    Attached Files:

  2. Brendan Burgess

    Brendan Burgess Founder

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    Some issues to consider

    If you are about to move down a valuation threshold in the near future, maybe hold off until you do so. It's not clear if you can do this again.
     
  3. Sarenco

    Sarenco Frequent Poster

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    It will be interesting to see how many borrowers actually avail of this opportunity to reduce their mortgage rates.

    The experience with PTSB wasn't very encouraging...
     
  4. gnf_ireland

    gnf_ireland Frequent Poster

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    I have been on contact with KBC on this, and they have informed me that if I am keeping my LTV band the same, I do not need a new valuation done. Maybe this is because I had reasonable headroom in my original valuation, or maybe because the valuation is quite recent (~18 months old), but it is worth checking with them

    I need to go through the detailed T&C's on the proposal.

    But I do share Sarenco's concern as to the numbers who will avail of this, an also continue to avail of it each time a rate change occurs (which I do find strange and not in line with a variable rate)
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    Last edited: Dec 2, 2016
    This really is the bank of tricks and gimmicks.

    In their press release at the time, they said:

    Eddie Dillon, Director of Product with KBC Bank Ireland, said: “We’re reducing our fixed and variable mortgage interest rates and making these available for both new and existing customers. We’re acknowledging and rewarding the loyalty of our existing customers while giving both home buyers and switchers a really compelling reason to move to KBC. These rates make KBC mortgages the most compelling and competitive in the market today.”

    If they want to reward the loyalty of existing customers, they should treat them fairly. They should pass on rate cuts automatically to existing customers and not force them to apply for a cut in the variable rate.

    This must be false advertising:

    upload_2016-12-1_15-24-45.png

    If a potential buyer sees the ads for "no tricks , no gimmicks" they might not read through the small print.

    Brendan
     
    Last edited: Dec 2, 2016
  6. Clara16

    Clara16 Registered User

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    what about KBC customers in negative equity? are we stuck on the highest variable rate?
     
  7. Kerrygrrrl

    Kerrygrrrl Registered User

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    Funny,
    As I called them again today as had not yet received a callback and was told that I would have to get a new valuation done and there are no exceptions! I have booked the valuer as at €127, it makes sense for me to spend money on that rather than my time on arguing with them. The LTV was circa 33% when we drew down originally in early 2015 and it is now circa 25% (not including any increase in property value).
     
  8. gnf_ireland

    gnf_ireland Frequent Poster

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    I am in a formal complaint with the FSO, so maybe this is the reason for the 'exception'
     
  9. kaisersoze81

    kaisersoze81 New Member

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    It specifically states in the t&c's that a new valuation is needed, even if you have had one within the last 4 months. A valuation costs €127, so there's 3 months before I get payback on this.

    My question is this, I'm on 3.3% at the minute, 60-80% LTV. Should I stay on variable rate which would drop to 3.1% or should I opt for the 1 year fixed rate at 2.9% (inclusive of 0.2% current account discount)? If rates drop again within the next year and I have to pay another €127 for a new valuation it wipes off any savings I'll have made.
     
  10. Brendan Burgess

    Brendan Burgess Founder

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    While it's good to see KBC allowing existing customers to apply for the lower rate, it's crazy that they don't just give it to people automatically.

    Your originating LTV was 33% - they should have automatically applied that rate to you.

    "No gimmick mortgages" Sure!

    Brendan
     
  11. Sarenco

    Sarenco Frequent Poster

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    Interesting point.

    I guess it depends on the outstanding loan amount and, to a lesser extent, your LTV but I can certainly see why, in your individual circumstances, you would take a 1-year fix @ 2.9% rather than go to the expense and hassle of a revaluation for the purposes of lowering your variable rate.

    Good spot.
     
  12. gnf_ireland

    gnf_ireland Frequent Poster

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    @kaisersoze81 what would you roll back onto after your 1 year fixed is up? Would it be the prevailing new business rate for your LTV or something else?
     
  13. kaisersoze81

    kaisersoze81 New Member

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    Yes it would be the prevailing new business rate at the time for my LTV. I'll be making sure I have written confirmation of this before I fix though. You literally can't trust a word out of their mouths.
     
  14. peemac

    peemac Frequent Poster

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    Query on this for those with tracker issues.

    I have valuation being done and may get under the 60%, but worst case 70%, so a nice saving from the current 4.25%

    The T&C's say that if you are currently on a tracker you cannot avail of this rate (obviously), but what if the Central Bank tell KBC to put those who fixed in 2006 back to tracker, does taking this LTV variable rate affect that in any way.

    I've read though the T&C's and its not clear - as they obvously will not put a clause in saying anything about the tracker issue.

    Any opinions?
     
  15. Onceagain

    Onceagain Frequent Poster

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    Think it has been advised to put any switch on hold.In a similar situation myself.
     
  16. Brendan Burgess

    Brendan Burgess Founder

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    If you are entitled to a tracker or if you have a claim that you should have been offered one, I don't see how signing that form would compromise you in any way.

    Brendan
     
    peemac likes this.
  17. peemac

    peemac Frequent Poster

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    I certainly wouldn't switch to any form of fixed rate as they very specifically say in any fixed rate instructions that you go to standard variable rate after fixed rate is over and give the current variable rate as an example.

    But variable to variable should be ok as per Brendan above - I'll double check with kbc just to be certain.
     
  18. AJ1

    AJ1 Registered User

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    I'm thinking of fixing for 3 years with kbc, ltv less than 50 percent, with current account discount this brings the rate down to 2.95.

    In the terms and conditions with the application pack it states that 'at the end of the expiry of your fixed rate term the then prevailing new business PDH LTV variable rate for your LTV percentage will be applied.

    I can't switch lenders as weve gotten married and had a third baby. Hubby is self employed. 2.95 doesn't seem too bad once I'm not going back to the standard variable rate at the end of the fixed rate.
     
  19. stefg

    stefg Frequent Poster

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    Last edited: Dec 7, 2016
    I would like to avail of the new lower rates for existing customers but I will not be applying for it in the current state as the terms and conditions are very dubious in my opinion. They are asking for significant changes that are favourable to them and not customers, all just to get what could be a very short term rate reduction based on the T&Cs.

    As Brendan mentioned above, they are now also asking customers to apply for lower rates rather than passing them on automatically as is standard for variable rates, this is not what I consider rewarding existing customers. They are making the scenario more complicated for customers and attempting to move away from the industry practice and commonly understood notion of variable rate mortgages without customers being very aware.
     
    Last edited: Dec 7, 2016
  20. The Oggster

    The Oggster Frequent Poster

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    We have had our valuation carried out on Friday and will be applying for the lower rate. We're currently paying 3.69% including the reduction for having a current account.

    We borrowed at 66% LTV in June 2014 and with the improved valuation (we carried out a lot of work to the house), we should be in a position to drop to <60%, maybe using a small lumpsum (around 4k depending on valuation).

    We can now get an interest rate of 3.11% (APRC) variable or fixed rates of 1 year 3.09, 3 year 3.08 or 5 year 3.09.

    To us it's a no brainer. We either take the variable and switch if they try anything funny or fix for a period where we'll be locked into a rate. I can't see the rates falling much lower and either way we're looking at a saving of around €50 a month.

    Am I missing something?