KBC Overpay/Redraw facility "Under Review"

[featherheadT]

I got a letter from KBC re mortgage that I have overpaid into. It said the facility was under review.
"In the event that changes to the scheme are proposed adn appropriate notice period will be provided to you at that time. We can confirm that you would have the option at that time to re-draw the undrawn amount of any overpayment in accordance with the terms set out in the previous paragraph."
Does anyone have any insight to this? Why would they stop this facility since it's effectively paying down the mortgage which I though KBC and all banks would be interested in at the moment? Are we going to get any interesting announcements from KBC in the near future?

 

[millieforbes]

I suspect it's the redraw aspect they are re-considering rather than the overpayments

 

[Brendan Burgess]

We have paid a large sum of money into KBC's redraw scheme. It appears that essential parts of the scheme have changed without customers being notified.

Here is the[broken link removed]. Did you sign this? It seems clear that you would have the right to redraw.

If you overpaid without completing such a form, it might be a different matter.

Oddly enough, this form doesn't seem to allow for the payment of a capital sum. I wonder if there is a separate form for that?

A. I/We wish to make an additional monthly payment of €. above my
scheduled mortgage repayment for a period of __ months.
The additional payments will be deducted from your capital balance. Although the scheduled term will
not be reduced you will benefit from interest savings. The funds will be available for redraw at a later
date subject to KBC Homeloans Terms and Conditions. The overpayment instruction will be applied for
the term of the mortgage unless requested otherwise above. Please instruct us in writing if you wish to
cancel or amend the overpayment amount.

B. I/We wish to increase our total monthly repayment to €. per month.
The additional payments will be deducted from your capital balance and the overpayments can be
redrawn at a later date subject to KBC Homeloans Terms and Conditions. We request that you review
the overpayment amount in the event of an increase to your mortgage repayment over and above the
amount you have specified above. The overpayment instruction will need to be renewed in 12 months if
you wish to continue with it. Although the term of your mortgage will not be reduced, if left in place for
the full term of the loan this credit will effectively redeem your mortgage at an earlier date. If the sole
objective in making the overpayment is to reduce your term, refer to option C.

C. I/We wish to reduce the term of my/our entire mortgage from __ months
to __ months (including subsequent top-ups).
Please be advised a term reduction will increase your scheduled monthly repayments. This option will
allow you to pay your mortgage off at an earlier date and also result in an interest saving. The additional
amounts paid will not be available for redraw at a later date. Please contact our Customer Services
Department on (01) 6646100 for a quotation in this regard.

 

[micamaca]

Hey,

I just wanted to say we also put in a lump sum against our mortgage with KBC with the belief that we could re-draw it again at a future date.

Earlier this year, we did withdraw a sum of money from this re-draw facility with no problems whatsoever. KBC came back to us quickly and handled everything as requested. No issue was made.

They did not mention to us that they would be changing the conditions of this re-draw facility. But I would imagine, from a bank's point of view, in this climate it must be a nightmare having to supply people with funds again in under 7 working days (or whatever the conditions are).

Has anyone else heard of them changing the conditions? Or has anyone else had problems when re-drawing monies from this re-draw facility?

m