KBC & Ulster Bank mortgages

E

Eoin_f

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We're in the middle of purchasing our first home and have been approved by BOI (we both bank with them), EBS and should have approval from KBC on Monday.

We are borrowing €326,000 and it's an LTV of 80%.

The plan was to go with KBC due their lower rate as we're not overly stuck for the 2% cashbacks etc if it's going to cost us in the long term... That is until I started reading on here about their "variable rates" not being so variable :(

We had gone to Ulster Bank also at the beginning but I ruled them out because they wanted us to change both of our current accounts over to them before they would even take a finance proposal which I think is just insane.... Is this possible/true??? I just feel that by the time current accounts are moved and proposal off & back there will probably be someone with a better offer and we'll be stuck.

Should we just go with KBC's 3.3% and move in a few years if rates have come down further?

Any help & advice appreciated as it's all new :)
 
Doesn't that rate at KBC require you to move your current account to them as well (their 0.2% discount).

Ulster Bank has been reducing their rates for existing customers in the past.
 
Hi Cilar, thanks for the reply. It does indeed but they took our proposal to get us approved and as long as the accounts are opened by the day we draw down we get the low rate. Ulster Bank want us to move everything now before they'll even consider the application so we're basically committing right now when draw down is potentially weeks away...
 
KBC are offering:
3.30% variable on a 80% LTV.
No cash sign on bonus.
Mandatory to open a current account but fees are avoidable if you deposit 2,500 EUR into a Flex account.
Rate decreases not passed on after you sign on. i.e. Existing customers are not given access to the best rates.

Ulster Bank are offering:
3.35% variable on a 80% LTV.
1,500 EUR cash sign on bonus via "legal fee contribution".
Mandatory to open a current account with fees of at least 4 EUR a month.
Rate decreases passed on after you sign on. i.e. Existing customers are treated like new customers.

In a few weeks, according to the Indo, Frank Mortgages will be in the picture also.

Out of KBC and Ulster Bank, I think the Ulster Bank package, as a whole, is a better option.
 
At LTVs over 80% for loans in excess of €250k, I would agree with CiaranT that Ulster Bank currently has the better overall package for variable rate mortgages.

However, I think the KBC variable rate offering pulls ahead of Ulster Bank's offering at LTVs under 60% or for loan amounts below €250k.

Having said all that, I think it's difficult to look beyond BoI's fixed rate offering at the moment when the 2% cash back incentive is taken into account.

It will be interesting to see what impact Frank Mortgages has on the market - particularly if they target the "ultra-prime" end of the market.
 
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