accept loan from KBC or EBS?!

D

dovetail

Registered User
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I got loan approval from both KBC and EBS. First time buyer / 80% LTV. I plan to choose variable rate options.

After the 0.2% discount for having a KBC current account, the KBC discounted rate of 3.3% is lower than EBS rate of 3.5%.

I showed my 'loan approval in principle' letter to EBS. EBS now say that if I were to proceed with their offer, then there is a strong possibility that they are able to adjust their rate so that it is matches KBC's discounted rate of 3.3%.

In addition, KBC can offer 50% off home insurance for the 1st year. EBC can offer 4 months free home insurance. (however pricing with each institution will vary depending on whom is underwriting each policy).

Based on the above information, both loan offers seem quite close. Would anyone have advice or comments please for which of these 2 banks would be best to draw down the loan?
 
Brendan Burgess said:
I answer the question in this thread.

Which is the best lender for first time buyers?

I would be interested in any feedback after you have read it.

Brendan
Click to expand...
Thank you Brendan, the thread is well laid out and clear. Noted about how KBC handle rate cuts with new and existing customers!
Regarding EBS, just wondering why they are not listed? Do you know if EBS have been good for passing on rate cuts to existing customers in the past?
 
Good point and I will update it.

AIB is the same as EBS and Haven.

So, in your particular case, I would suggest that EBS is clearly better than KBC.

Brendan
 
dovetail said:
EBS now say that if I were to proceed with their offer, then there is a strong possibility that they are able to adjust their rate so that it is matches KBC's
Click to expand...
Is this your wording or theirs?
How soon would they confirm if that strong possibility is an actual fact.
If it's soon and it won't cost you anything before you get it in writing as an actual rate, I would go ahead while keeping your options open in case the possibility suddenly disappears.
 
'strong possibility' is my wording 'confident' was their wording. They said that they could confirm withing 24-48 hours of me finding a property. I'm going to go ahead with EBS on that basis and get it locked down in writing before signing loan contract. The KBC option would still be open a that point.
 
dovetail said:
After the 0.2% discount for having a KBC current account, the KBC discounted rate of 3.3% is lower than EBS rate of 3.5%.
Click to expand...

In the KBC support site it says this offer is valid until 31st March 2016. It's in the Important Information bit.
https://www.kbc.ie/Help/Mortgage-Support

I'm currently with KBC and have the current account discount. When I signed up to it they wouldn't reduce the rate until I signed and returned a form. When I complained about this as I didn't receive the form for a month they said they couldn't change the rate without me signing the form. I'm presuming they can't change the rate back unless I sign another form. I haven't received any this month so not sure what's happening on 1st April.
 
Hi Qwerty

I presume that anyone who has signed up for the 0.2% gets it for the full term of the mortgage. It does not end on 31st March.

"KBC reserves the right to remove the availability of this offering for new business customers at any time in the future. This will not affect existing customers who have already availed of the discounted Current Account Mortgage Rate."

I presume that this means that they no longer have to offer it to new customers after 31st March.

Brendan
 
I'd be interested in hearing what happens here as I was told the same thing by their rep when we were approved with them and I stated I had cheaper options elsewhere yet have heard nothing ever since.... (now a month on)

We decided to go with Ulster Bank in the end at 3.35% variable (same 80LTV & first time buyers like yourself) after reading info on this site. We were approved with KBC also but the 3.35% vs 3.3% is really cancelled out by Ulster Banks €1,500 "solicitor fees contribution".

Just waiting to sign contracts now
 
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