KBC follows AIB's lead and cuts mortgage rates - but for new customers only

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Sarenco

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Following AIB's announcement earlier today, RTE is now reporting that KBC has followed suit with a range of cuts to its fixed and variable rate products which will take effect from next week.

"The bank said it would cut its variable rate offering, where the loan to value is less than 80%, to 3.2%.

Where the loan to value is under 50%, the bank will cut its variable rate to 3.1%.

These changes only apply to individuals who open a current account with the bank.

It's also introducing cuts to a range of its fixed rate products.

KBC has also extended its offer of €2,000 towards professional fees for all mortgages switched to KBC up until end September 2016.

It also offers 50% off KBC home insurance for all new mortgage customers in year one."

http://www.rte.ie/news/business/2016/0509/787163-aib-cuts/
 
I guess they had to do something to continue their claim they were the cheapest mortgage provider in Ireland
 
According to the Irish Times:

"KBC followed suit within hours, lowering its standard variable rate for new customers to 3.2 per cent."

It seems to be for new customers only.
 
No doubt. Still, it's unusual to see a bank reacting so quickly to competitive pressures. That has to be a good thing, no?
 
@Sarenco either that or they may have to pull an existing advertising campaign for risk of false advertising

I have no doubt that all banks have been reviewing their situation since the FG-FF deal to see what scope they had, if pressure was applied on them

But yes, very unusual to react so quickly
 
Hah! I hadn't thought of their advertising copy.

Still, whatever about the motive, anything that helps to move the dial in the right direction surely should be welcomed. If it increases average disposable income that isn't being spent on servicing loan obligations that should (hopefully) become a virtuous circle where everybody in our economy benefits. If it prompts other lenders to re-act positively, so much the better.

Who knows, Frank might find themselves having to offer sub-2.5% mortgage rates to gain traction!
 
Sarenco said:
Still, whatever about the motive, anything that helps to move the dial in the right direction surely should be welcomed. If it increases average disposable income that isn't being spent on servicing loan obligations that should (hopefully) become a virtuous circle where everybody in our economy benefits. If it prompts other lenders to re-act positively, so much the better.
Click to expand...

100% Agree

Sarenco said:
Who knows, Frank might find themselves having to offer sub-2.5% mortgage rates to gain traction!
Click to expand...
One can only dream of getting closer to that holy grail ...
 
To anyone thinking of taking a kbc mortgage, just watch how they treat you once you are a customer.

Yes, low fixed rates to start, but after 2 years / 3 years you have 2 options.
1- standard variable rate @ 4.25%
2 - fix again at their extortionate "current customer" rates of 4.1% - 4.3%

Avoid at all costs
 
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