No - I agree that it's a no brainer for you. You would also get the 0.20% reduction for having a current account so your effective rate would drop from 3.69% to 2.90% (if you go with the one-year fix).
KBC existing customers can get lower rates
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No - I agree that it's a no brainer for you. You would also get the 0.20% reduction for having a current account so your effective rate would drop from 3.69% to 2.90% (if you go with the one-year fix).
The Oggster
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My post was including the reduction.
The only thing we have to decide is what rate to pick. What would other people go for?
The interest rate on a one-year fix (including the current account discount) for LTVs of less than 90% is 2.90%, not 3.09%.
I would ignore APRCs (if that's what you're referencing) when it comes to fixed rates - they're not very meaningful.
Incidentally, would you actually need a valuation to take the one-year fix?
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The Oggster
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Yes, that is what I was referencing. I though that was the 'actual' rate you'll be paying.
They seem to be requiring everyone to submit an up to dat valuation. Will help us as the house has probably gone up around 20k since we bought it. We had a new heating system, rewire and insulation done. Also had a large run down shed restored.
They seem to be requiring everyone to submit an up to dat valuation. Will help us as the house has probably gone up around 20k since we bought it. We had a new heating system, rewire and insulation done. Also had a large run down shed restored.
Are you sure? The 2.90% one-year fixed rate (if that's the product you opt for) seems to apply to all LTVs of less than 90%.
The Oggster
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Well it'll help us if we decide to go for a longer fixed term. There's no getting around the need for a valuation for us anyway. It's only €127 to achieve a reduction in monthly payments of around €50. Even if our valuation stayed the same it'd still be worth it.
Thanks but I assume KBC would let you take a one-year fix without a valuation - no?
The Oggster
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Nope. Everyone needs a valuation to switch to these rates.
ned official
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Can somebody tell me why aprc is higher for 1 year fixed than 2 even though Apr rate is lower??
Ah, I see.
Sorry, I assumed the valuation was only required if a borrower was looking to drop into a lower LTV bracket then was the case on origination.
Seems a bit ridiculous to require somebody then drew down a mortgage with a 66% LTV in 2014 to get a fresh valuation to fix at a rate that applies to LTVs up to 90%. I wonder is it driven by a regulatory requirement?
The APRC is the annual percentage rate of charge over the full term of the loan (including the post-fixed term period). It's not a very meaningful figure.
ned official
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So payment would be less on the 1 yr fixed even if aprc is higher. APR is best way to judge
Well, it's one and the same for a one-year fixed rate but I would just look at the rate over the relevant fixed term.
If it were me I'd go for the five year fix. Great piece of mind. I base this on the fact I think rates are going to go up. Nobody knows what Trump and Brexit will mean for rates and the fact that Irish banks still have too many historical arrears cases so they can't drop rates
The Oggster
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Yeah I had read somewhere a valuation is only valid for 2 months according to the Central Bank. I had a search for this and it seems that they have recommended this to be increased to 4 months in the recent review of Mortgage Measures, due to come into affect in January.
This is my thinking too as I haven't seen rates this low before. I know people on lower but that's only because they're on trackers.
The Oggster
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We fixed for 5 years in the end at 3.05. Our valuation had increased so we were at 60.86% LTV. I worked out that we'd have to pay nearly €4k to drop a band and that would save us around another €12-14 a month. We decided that the cost of €4k for a saving of around €800 was not worth it (over the 5 years). That may be a mistake but we're buying furniture at the moment and doing up the house so didn't want to spend a lump sum like that.
Our new monthly payment is just about €70 a month less than what we were paying.
Our new monthly payment is just about €70 a month less than what we were paying.
In the middle of changing to lower rate gone from 3.65 to 2.96 1 year fixed. Ltv went down to 60-80 so will drop to this after 1 year currently 3.1 or whatever the current rate for that band at the time. We only bought house less than 12 months ago and valuation increased by 25k so pushed us into 60-80 band valuation so happy with that. The process was very straight forward. Our mortgage has dropped over 100e
Just about to complete this form and read though it again.
The "Declaration and Authorisation" states
"the terms and conditions set out overleaf shall be binding on me/us and shall amend the existing interest terms and conditions of my/our Mortgage"
I would assume that if/when the tracker issue is resolved and hopefully in favour of customers, that this condition would be voided. That's the advice I have got, but considering how KBC have acted in the past, would others think the same?
For me, the new rate is a saving of €300/month.