A few questions re T's & C's on my mortgage agreement.

P

PaddyW

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Forgive me in advance if this turns out to be a long winded post.

I have a 3 year fixed rate with IIB, or KBC as they're now known and was curious as to what rate I would be on after the expiry of the fixed rate term.

1 ."At the expiry of the fixed rate period the interest 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."

Does this REFI rate mean I will go on to a a tracker at ECB +1.25%?

2. "In the event that, or at any time, the REFI rate is certified by the Lender to be unavailable for any reason the interest rate applicable to the loan shall be the prevailing Home Loan Variable Rate."

Does this mean they can pull the tracker rate (if that's what it is) at any time for any reason?

3. "In determining the interest rate applicable to this loan facility, the Lender retains the right at it's sole discretion to substitute one month EURIBOR for the REFI rate where one month EURIBOR is more than 0.25% above the REFI rate for a period of longer than 30 days. The substitute rate would no longer apply from the first day of the month following a continuous period of 30 days where the one month EURIBOR is less than 0.25% above the REFI rate, and the REFI rate would then be used in determining the interest rate applicable to this loan."

I take it that this means that if the EURIBOR rate is more than 0.25% above REFI rate for a continuous period of 30 days or more, they can put me on the EURIBOR rate instead, but if this drops back to within the limits again they can just put me back on the REFI rate?

Again, apologies for the long winded post. Thanks in advance for any insights you can give me into the above.
 
My solicitor is in Clare and I'm in Dublin, new pay period implemented in work so can't go outside my budget at the moment. Thought maybe someone might have some idea.
 
Every "answer" you gave above is pretty much the way I woulda read things :
1. You should be reverted onto a tracker rate of ECB + 1.25% at the end of your fixed loan.
2. If that's not possible, you'll get the variable rate at the time (bit sneaky that one. Pretty much gives them leeway to back out of the tracker. I guess you'd have to ask in writing as to why the REFI rate is unavailable).
3. Don't know about this one.

How long have you left on your fixed rate?
KBC's new variable rate is 3.74%, whereas ECB + 1.25% will have you at 3.25%. So in the current climate, whichever you choose, you'll not be doing too bad...and I'd wager you'll be saving a good bit on your current fixed rate.
 
Thanks Soarer. I'm lucky in that it's a pretty small monthly repayment, just 422 after TRS. I'm on 5.24 fixed and I don't want to pay the 1500 euro fee they were looking for a few weeks back, which is probably even larger since the last rate cut.

Thanks again for the reply, it confirms, pretty much what I was thinking. Much appreciated.
 
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