[Thread closed] I have a KBC tracker – should I consider fixing?

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Brendan Burgess

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Key Post - I have a KBC tracker – should I consider fixing?

Moderator's note: If you want to ask whether you should fix or not (or switch to another lender), please provide the following information: 1) Existing tracker margin. (This is set in your mortgage contract.) If your tracker margin is 1%, please state it in the following format to avoid...
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KBC customers

The ECB rate is currently 1.25%. I will base my comments on an ECB rate of 2%

If you have a KBC tracker with a margin of 0.5% ("ECB + 0.5%"), then you will find yourself paying 2.5% .

I think that this is more attractive than KBC's fixed rates for people getting the 0.2% current account discount:

1662549469181.png

Update: Peemac has reported that KBC is, in effect, not allowing tracker customers to fix:

KBC tracker to fixed - horrendous rate.

Just for anyone with a KBC tracker that had thoughts of fixing. Don't even bother calling them. They are only offering "standard fixed rates" (whatever these are) if you are on a tracker. These rates start at 3.9% I have just over 5 years left. Tracker 0.95, LTV about 25%, so thought I'd take...
www.askaboutmoney.com

Of course, the risk is that ECB rates could exceed 2%.

At the other end of the scale if you are on ECB + 1.5% (a margin of 1.5%), you will shortly be paying 3.5%

You should definitely not fix for the short term, e.g., 3 years. You will be scalped by Bank of Ireland after that.

It also depends on how much you have left on your mortgage and how long you have left on your mortgage and whether you might overpay it or clear it before the natural term. Or you might want to trade up.

If you only have 10 years left and €100k, I would probably fix for 5 years. Even if BOI scalps you for the last few years, you won't have a big balance.

You could fix for 10 years, but then you could face an break fee if you want to clear it early.

Brendan
 
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If you want to ask whether you should switch to another lender or keep your tracker, please provide the following information:
1) Existing tracker margin. (This is set in your mortgage contract.)
  • If your tracker margin is 1%, please state it in the following format to avoid confusion: ECB + 1%
2) If you have an additional mortgage on the same property, what is the rate?
  • E.g., "Fixed at 2% with three and a half years of the fixed-rate period remaining."
3) Amount outstanding on your mortgage
  • If you have both a tracker and a second mortgage on the property, specify the amount outstanding on each
4) Remaining term
5) Lender
6) Value of your home
7) Might you trade up or overpay your mortgage?
8) Do you face any barriers to switching? E.g., an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage, you are now renting out the property.
9) What rates are you considering fixing at?
10) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary.
 
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As requested here's my move or keep tracker query. We moved last year so have a tracker mover and a 5 year (3 1/2 left) fixed term for the diference.
1) Existing tracker margin :- KBC tracker mover rate ECB + 2.5%, 2.45% fixed.
2) Approx 235000 on tracker and 120000 on fixed
3) Tracker 15 years, fixed 23 years
4) KBC (both)
5) Approx 525000
6) Happy to overpay if possible
7) no barriers to switching
8) Open minded
9) BER D2
 
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It is hard to know, but as a fellow tracker mortgage customer I would be reluctant to give it up, the last time the ECB kept raising interest rates was 2007/2008 it rose to 5.5% and people on tracker mortgages were crying to get rid of them, after just 6 months, it collapsed and stayed 0 /-ive for the guts of 10 years....
 
Its the extra kicker of being on a tracker mover rate which means the tracker even at low rates isnt much better than the variable rate
 
mikerd4 said:
KBC tracker mover rate ECB + 2.5%,
Click to expand...

This is a very expensive tracker and has almost zero value.

Your mortgage will be moved to Bank of Ireland and you will be subject to their predatory rates. With 23 years left on your mortgage, you need to get away from Bank of Ireland.

So you should begin the switching process immediately and try to get it done before the banks increase their fixed rates.

With €355k on €525k , your LTV is 67% and you will find the lowest rates for this LTV here:

Best Buy - Which lenders have the lowest mortgage rates? (Updated April 2023)

While I wrote the original post on this, Paul F has edited it and made it far easier to read and has kept it updated. Brendan You (or your broker) should apply to two or three of the cheapest lenders simultaneously. It might take some time for your loan offer to materialise, and today's Best...
www.askaboutmoney.com

I think you should apply to AIB and Avant and make a decision when you see the rates. I think that 5 years is an appropriate term to fix for. While Avant is more expensive than AIB now, by the time you switch, it may be the other way around. I wouldn't bother with Haven as they are very slow to process loan applications at the moment.

mikerd4 said:
a 5 year (3 1/2 left) fixed term for the diference.
Click to expand...

Check with KBC what the break fee is. But I think you should switch anyway even if you face a hefty break fee.

Brendan
 
I have 14 years left on the tracker portion of my mortgage, 235000. The fixed rate portion is 23 years, 120000.
 
Spoke to KBC, they are not offering 10 year fixed rates any more, well at least not to people considering moving from a tracker
 
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