# KBC offering €1,000 to switchers



## LDFerguson (31 Jan 2014)

KBC have announced that they will pay €1,000 towards legal fees to someone who switches their mortgage (home-loan or residential investment proeprty) to them and draws down the loan before 30/4/2014. There's a 3-year clawback if you pay off the loan within 3 years. They're also offering a year's free home insurance if you draw down a home loan (owner-occupiers only) with them before 30/4/2014. 

It's been a while since such offers were out there. In the days when tracker mortgages were available, these sort of offers were very attractive, as you could calculate the potential savings in repayments by switching over the full life of the loan. Now you can only calculate the potential savings with certainty over a fixed-rate period as Standard Variable Rates can be changed by KBC at any time.

That said, all competition is good competition...


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## irishguy (1 Feb 2014)

Where did you see this I can't see it on thier site


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## LDFerguson (1 Feb 2014)

They announced it to brokers yesterday.


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## mercman (1 Feb 2014)

There's no such thing as a free lunch.

If any person is thinking of been bought by this, ensure you read the small print.


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## irishguy (2 Feb 2014)

You would have to stay with them for 3 years based on their other offers. It saves us €100 pm, our insurance is just paid so I am not sure if they will give us extra for legal fees.


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## ronaldo (2 Feb 2014)

irishguy said:


> our insurance is just paid so I am not sure if they will give us extra for legal fees.



I doubt it. I would guess that the insurance isn't costing KBC much.

I'd imagine Zurich are providing this at minimal cost in the hope that most people will stick with them after the first year.

Therefore, if you opt out of the insurance offer, they're unlikely to offer you anything in lieu.

KBC would also make ongoing income from all the policyholders that stick with Zurich given that they are, in effect, the broker.


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## irishguy (2 Feb 2014)

Well if they offer €1000 for the legal fees then it's covered....


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## LDFerguson (2 Feb 2014)

irishguy said:


> Well if they offer €1000 for the legal fees then it's covered....


 
Yes, that's the general thrust of the promotion.  Many solicitors will do the conveyance on a re-mortgage for under €1,000 all-in (including fee, VAT and legal outlays) and the valuation costs €130.  So the cost of a re-mortgage is usually around €1,100 and KBC are offering cash-back of €1,000.


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## finnie (2 Feb 2014)

No good to me at the moment but if this is the start of the availability of switching options then it is great. Surely we will see more and more of this as non pillar banks try to poach the most attractive customers.

I'm on a stinky -aib 4.5% variable. In a few years I should be close to 40% equity and kbc have that at 3.85%

Not much but worth 650 euro a year per hundred thousand borrowed.


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## LDFerguson (2 Feb 2014)

finnie said:


> No good to me at the moment but if this is the start of the availability of switching options then it is great. Surely we will see more and more of this as non pillar banks try to poach the most attractive customers.


 
You'd certainly hope so.  As far as I know Investec should enter the Irish mortgage market this year which will bring a bit more competition.  Competition is good.


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## irishguy (3 Feb 2014)

I read somewhere in the paper, either Sunday business post or independant that they are no longer entering the Irish market. They didn't give a reason


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## LDFerguson (3 Feb 2014)

irishguy said:


> I read somewhere in the paper, either Sunday business post or independant that they are no longer entering the Irish market. They didn't give a reason


 
Ah £$%&!


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## Bronte (4 Feb 2014)

finnie said:


> I'm on a stinky -aib 4.5% variable. In a few years I should be close to 40% equity and kbc have that at 3.85%
> 
> Not much but worth 650 euro a year per hundred thousand borrowed.


 
You shouldn't assume they won't look at you until yo'ure at 40% equity.  Nothing ventured nothing gained.  650 Euro per year for 3 years, and house insurance too.  Not to be sniffed at. The fact they are offering this means they are open for business, they want people like you.  Might make your own bank offer you a lower variable if they even think you are switching, so talk today to both AIB and KBC.  

That 650 Euro could go back in again off your capital etc.  So it can be worth more than you think.


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## ryaner (4 Feb 2014)

irishguy said:


> I read somewhere in the paper, either Sunday business post or independant that they are no longer entering the Irish market. They didn't give a reason



They cited the non recourse nature of the Irish market. As recent as December they were still talking about entering however, and I could see them entering but only accepting really really specific cases.

http://www.independent.ie/business/...or-new-mortgage-lending-on-hold-29818741.html


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## irishguy (4 Feb 2014)

Does anyone know if I move my mortgages do I keep my tax relief?


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## shweeney (7 Feb 2014)

irishguy said:


> Does anyone know if I move my mortgages do I keep my tax relief?



Yes.


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## LDFerguson (10 Feb 2014)

Niall Brady wrote a 5-minute guide to this in yesterday's Sunday Times.  See here.


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## shweeney (13 Feb 2014)

@LDFerguson - I contacted KBC about this but they said they couldn't switch my mortgage based on income etc.

I don't have a particularly huge mortgage (with BoI) and have a reasonable amount of equity - any point trying through a broker?


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## Landscape (8 Jun 2014)

Hi, I am thinking of switching my mortgage from AIB to KBC at the moment. They have extented the €1000 legal fees offer to the end of June. I do get the impression from dealing with them, though that they would be very happy not to pay the €1000.Has anyone switched to them and received the €1000 from KBC ? Thanks.


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## LDFerguson (8 Jun 2014)

shweeney said:


> @LDFerguson - I contacted KBC about this but they said they couldn't switch my mortgage based on income etc.
> 
> I don't have a particularly huge mortgage (with BoI) and have a reasonable amount of equity - any point trying through a broker?



Apologies - didn't see this until now.  Put up details and I can have a look if you like.


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## LDFerguson (8 Jun 2014)

Landscape said:


> Hi, I am thinking of switching my mortgage from AIB to KBC at the moment. They have extented the €1000 legal fees offer to the end of June. I do get the impression from dealing with them, though that they would be very happy not to pay the €1000.Has anyone switched to them and received the €1000 from KBC ? Thanks.



Once you close by the end of June you'll get the €1,000.  That's tight on time so I'd move rapidly if you want to avail of it.


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## irishguy (9 Jun 2014)

I just availed of this offer. We submitted all the documents in mid Feb and drewdown mid May. KBC were very helpful, but very bureaucratic. Large amounts of documentation and after getting a email saying we were approved in principle it took over 5 weeks to get a letter saying it, at which point they could issue the documents to our solicitor. This was with almost daily emails for updates.

If you are going ahead with this get your Solicitor to start ASAP and get everything that can be done done in advance.

Also they don't offer internet banking for mortgage accounts and its required to be paid on the 1st of the month (no changes allowed), but hey its cheaper so I can't complain that much


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## Landscape (30 Jun 2014)

Thank you Irish Guy and LDFerguson.

Got everything set up and sped through the process (with several prompts from me).

With a couple of days to spare(to the €1000 legal fees deadline) I was told all was in order and just waiting for the drawdown. 

Following on from that with an hour and a half to spare I was emailed to say one piece of additional documentation was required. Of course, I cannot supply documentation at the drop of a hat within a couple of hours , so I missed the deadline. I will be putting my case to them, that it was their system that missed the deadline and not my actions. Do you think I will get anywhere ?

Any advice appreciated.


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## garbanzo (22 Sep 2014)

Just giving this a bump. By my calculations it could be worth over e100 a month to me to switch. Is there anyone else out there who has made the switch and want to share their experience? 

I'm on an EBS variable at 4.56% at the mo. KBC offering it at 3.85%.

Thanks


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## micar (4 Oct 2014)

I'm interested in this well. I'd be probably saving €85 per month. 

Has anyone any idea how much the legal fees would be?


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## biffomac (9 Oct 2014)

micar said:


> I'm interested in this well. I'd be probably saving €85 per month.
> 
> Has anyone any idea how much the legal fees would be?


 
Looking into switching myself.

Got two quotes today. One for 1580, which sounded excessive. The other was 960. The broker did say it should be coming in at about the 1000 mark or just under.


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