KBC Variable Rate. BEWARE

Sounds like you were mis-sold the product. You thought you were getting a SVR but thats not what they signed you up for.

Would you want to be moved to their SVR product?
 
AlbacoreA said:
Sounds like you were mis-sold the product. You thought you were getting a SVR but thats not what they signed you up for.

Would you want to be moved to their SVR product?
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KBC do not have any product called a standard rate mortgage (please see below)
https://www.kbc.ie/interest-rates

I took out a "variable" rate mortgage nothing more nothing less.
I and anyone else who did took it out under an unequivocal understanding that our mortgage interest rate would change each and every time KBC changed their variable rate.
That isn't a remotely unreasonable expectation and is supported by KBC's own website definition.

Variable Rate

With a variable rate, your monthly repayments may rise or fall from time to time. If the variable rates fall your monthly repayment reduces, while if variable rates rise, your monthly repayment increases. Variable rates can be increased or reduced at the discretion of the lender.
 
I'm agreeing with you. I wasn't specifying a product name, just the type of product.

You bought one product but actually put on something entirely different.

the question remains are you worse off or better off on the product you are on. Because all they can do is move you to the svr product. You cant be compensated if you haven't lost out?
 
Certain health insurers do a similar renaming of products similarly while changing the benefits.
 
AlbacoreA said:
I'm agreeing with you. I wasn't specifying a product name, just the type of product.

You bought one product but actually put on something entirely different.

the question remains are you worse off or better off on the product you are on. Because all they can do is move you to the svr product. You cant be compensated if you haven't lost out?
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Again,
I don't think KBC have a product called an SVR Mortgage (or at least up till recently they didn't)
Their SVR is the highest rate at which they lend variable rate mortgages.

What they have now decided to do is when they make an announcement of a cut to their variable rate they add "this will bring our standard variable from 4.50% to 4.25%"
When you query why as a variable rate customer you didn't get the cut they will say (as they said to me)
"Sorry, look at our announcement it clearly states we are reducing rates from 4.5% to 4.25%. Your variable rate is not at 4.5% so we wont be passing it on to you"

This totally screws every customer not on 4.5% but who signed up to a variable rate mortgage 100% in the belief all variable rate changes would apply throughout life of mortgage.

That to me and most others is sharp practise and needs to be stamped out asap.
 
Silvio Dante said:
What they have now decided to do is when they make an announcement of a cut to their variable rate they add "this will bring our standard variable from 4.50% to 4.25%"
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What rate are you currently on? Is it higher or lower than 4.25%?

If it's 4.25% or higher then you might have an argument that you were sold a discounted variable rate that is now higher than the standard variable rate and is therefore no longer a discounted rate. If your current rate is lower than 4.25% then I don't really understand what you are complaining about.
 
Silvio Dante said:
Again,
I don't think KBC have a product called an SVR Mortgage (or at least up till recently they didn't)...
Click to expand...

You keep repeating this. No ones talking about a product called "SVR" anything. I don't know why you keep saying that.

1) You need to ask the bank, what is the product X called that they are reducing the rate on. Why aren't you on that instead of the product Y you are on.

2) I suspect though what you want is, not to move to that product X , but to have the product Y you're on, have the same rate drops as the product X.
 
AlbacoreA said:
You keep repeating this. No ones talking about a product called "SVR" anything. I don't know why you keep saying that.
Click to expand...

Good Lord,
You entered this thread by asking me a simple question

Would you want to be moved to their SVR product?
 
Hi,

Unfortunately I’m a bit late to this party.

I’m only realising now that kbc have not been passing on variable rate reductions to me. I'm amazed if they can get away with this.

I feel I was mis-sold the mortgage (taken out in May2014) & treated very unfairly.

Has anyone brought case to Ombudsman? Any success?

Thanks,

Kevin
 
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