# KBC fixed to tracker



## Chazzer (13 Nov 2017)

Hi .i am in the process of gathering info on my mortgage taken out in 2007. Initially fixed for 3 years with a special condition on the offer letter stating on expiry of the 3 years "the rate shall be no more than 1.25% above the prevailing ECB main refinancing operations minimum bid rate (REFI rate) for the remaining term of the  loan ". Are the  banks required to issue a rate options letter usually a month prior to the fixed rate expiry to advise customers of their rate options on rollover ?? KBC have no record of this & advised me today it's not their policy to send such a letter & that my rate in July 2010 would have automatically went  onto the standard variable rate ?  I have queried this with them obviously & await a callback. The tracker rate was not applied ... Has anyone else come across this ? I thought it was standard to issue rate options before a current fixed rate expired ? Thanks !


----------



## PJDCol (13 Nov 2017)

Hi Chazzer, are you saying that you fixed at drawdown and the special conditions stated the above? I assume this is one of the cohorts Padraic Kissane has mentioned in many of his interviews.

I honestly can't believe even a contract as simple of that could be considered to go on a variable rate.

Does the special condition at the end say "In the event that, or at any time, the REFI rate is certified by the lender to be unavailable for any reason the interest applicable to the loan shall be the prevailing Home Loan Variable Rate" ???

I assume this is the what they are using as their line of argument.


----------



## PJDCol (13 Nov 2017)

More KBC threads here that might interest you

https://www.askaboutmoney.com/forums/central-bank-tracker-review.145/


----------



## Lightening (13 Nov 2017)

Hi Chazzer

The margin rate of 1.25 is in line with the communication to brokers (the flyer) for the "fixed from start" at this time.

However I am presuming it is as PJDcol states
Above in your contract ;

"In the event that, or at any time, the REFI rate is certified by the lender to be unavailable for any reason the interest applicable to the loan shall be the prevailing Home Loan Variable Rate"  ! (So by 2010 the Tracker rate was not available to you as the finished giving trackers in 2008)

I would suggest to KBC that this fixed contract was generated in error and that it should have rolled to the "Lenders prevailing variable Rate" (tracker) as was the norm for all the fixed rate contracts at that time.


----------



## Chazzer (13 Nov 2017)

Hi pjdcol . Yes the mortgage drew down at the 3 year fixed rate from
The outset . I've read over the special condition & yes it also has that extra sentence that you quoted above " in the event that .... etc etc ... prevailing Home Loan Variable Rate " ..


----------



## Chazzer (13 Nov 2017)

Thanks lightening .. There was no broker involved in my mortgage as I dealt directly with KBC in 2007 .. is this wording not the 'standard' on the offer letters for all of these tracker  conditions?  I guess not .. that's why we're all on here querying it !! Does anyone know if  the banks HAVE to send you the rate options being offered prior to  the fixed rate expiring / rolling over ?


----------



## Lightening (13 Nov 2017)

In your fixed rate it states you will roll to the "Home Loan Variable Rate if refi not available. (Despite it stating your tracker was for the term of the loan) KBC have stated to you that's the Standard Variable Rate. 

Those who fixed via the broker the contracts didnt say that.

I still think you have an argument and believe as PJDcol states you are one of PKs cohorts.

If I was you I would get in touch with Padraic.


----------



## Chazzer (13 Nov 2017)

Thanks I'm in the process of gathering all the docs together and I'll give his office a call .


----------



## Danmc131313 (19 Nov 2017)

Hi chazzer, 
My offer letter states exactly the same and I called kbc last week who confirmed my account was under the tracker review!!! Fingers crossed


----------



## Chazzer (19 Nov 2017)

Hi Danmc.. very interesting .. so when you came off your fixed rate what rate did they put you on do you know ?


----------

