KBC Negative Equity mortgage options

Is there such a thing as a list of current mortgage rates offered by Irish banks? A best buy post like the deposit/regular saver one.

We just got approval (from KBC) to sell out current NE home and buy again. The NE will remain on our tracker rate + a 1% penalty. The new mortgage will however be on a svr of 4.3%. Is this a particularly high rate? I'm just wondering should we apply to another bank to see what rates are being offered?

Yes, check out the Key Posts. Actually, don't bother.

If you have €300k @2% and €100k @ 4.3%, then the rate on your mortgage will be 2.6%. You won't get anywhere near that from any other lender.

Brendan

Hi Brendan,
Apologies, I didn't see the key posts. Our mortgage will be structured something like 45k@ tracker of 2.2% over 17yrs and €345k at SVR 4.3% over 30yrs.
I don't understand the calculation you used to reach the combined rate of 2.6%. Could you explain?
thanks.

So the plot thickens. After a phone call with KBC apparently we have the option of:
a: moving the NE onto the modified tracker rate and the new loan onto SVR or
b: we can move the current outstanding mortgage onto the modified tracker and the new loan amount onto the SVR

On a new mortgage of 400k, this could look something like the following:

Sorry, I couldn't manage to post that sheet in the same post.

The best option in the long term is to put the old mortgage on the tracker but those mortgage repayments are crippling. It's so very difficult to know what the right and best option is for our family. I would be really grateful for some objective advice.

We can:
a: Stay where we are. The house is very small and although, we have spent alot of money on it, we can see that damp problems will need to be addressed. Our son also has asthma and the damp and airborne mould cannot be helping. The house is also in a less affluent area with poor primary schools in our catchment. Staying will allow us to save minimum 1k per month. However, I feel that our house has now reached a realistic peak selling price. In our hearts, we want to leave.
b: We know we have to leave Dublin to afford a bigger home in a good catchment. We dont want to move outside of the 50k radius as it will have implications for the deposit we require and it also increases the cost of travelling back to the capital for work. So far we have not seen a family home (modest, nothing flash) for under 360k.

Is there another option we're missing or is it as simple as a or b?

I doubt if they have offered you that choice. I think that the person you spoke to was confused, or they confused you. You will find the terms and conditions of the KBC Negative Equity mortgage here: [broken link removed]

Please provide the following information
1) Value of current home: €230k?
2) Existing tracker: ECB + 1% ?
3) Amount of savings you have
4) Target price of new home: €360k

Thanks Brendan. I'm on my phone and can't read the PDF in that link but I will in the morn. I definitely didn't misunderstand her because I queried her conflicting information. I'll talk to them in the morning. In answer to your questions:

1) Value of current home: ~€230k
2) Existing tracker: ECB + 1.05%
3) Amount of savings you have: 50k
4) Target price of new home: we'd rather around €300k but it's looking more like €360k+

It can be confusing...

Brendan, I called kbc today and they confirmed that we do have an option as regards how we structure the mortgage across two rates. I haven't got that in writing yet though.