KBC ripoff: What can I do at 93% LTV

blackiegray

Registered User
Messages
6
Paying 4.05% at KBC, their discount rate(!) for switching current account to them.
Owe 333,000, value roughly 355,000.
They won't budge on rate.
Is there anything I can do?
 
Two doors down went for 355 about three months ago. Valuer said he might be able to get it to 360 but not below 90% LTV.
They mentioned the two year fixed when I rang up, but that still seems a rip-off.
 
Okay. How about you increase your repayments to the capital to get yourself below the 90%. While waiting for property prices to rise. Potentially. (I'm not discussing that though as it's not allowed on here)
 
Unfortunately very tight for cash. Is there any scenario where it would be worth borrowing enough to pay it down under 90%?
 
What's your age(s), gross salary, and remaining term on mortgage?
Do you have any other borrowing?
 
House value: €360k
90% = €324
Owe €333k

Needed to reduce it to 90% : €9k

Borrow €9k from Credit Union at 10% = €900 a year in interest

Reduction in interest possible: From 4.05% to 2.5% fixed for one year.

€323k @ 1.5% = €4800 a year.

So well worth borrowing the money to bring down the LTV.

Get the valuation first.

Brendan
 
Apologies, I was mixing up and thought you'd have to switch lender to get a better rate.

What Brendan has suggested makes perfect sense in your circumstances.
 
Hi again
Value went up a little so got this loan to 90% at last.
So have option of lower fixed rate now at KBC.
What would people recommend?

Balance 328k

3 years at 2.65% = 1640 pm
5 years at 2.8% = 1665 pm

Even the latter is a 220 pm saving for us on current payment.
 
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