Which is the best lender to take out a mortgage with? - Discussion

I am in the process of switching mortgage at the moment so trying to weigh up the different options..

I was about to go with KBC, but I think they are in the mode of attracting new current accounts and mortgages. I am very wary that they will change tack once they are out of that phase so to speak. It's a very old trick. I'm also wary of their cashback for the same reason... that would be clawed back very easily through a slightly higher svr.

The best buys on paper at the moment do seem to be AIB or Ulster Bank but will they continue to pass on interest rate cuts? It's impossible to know 5 or 10 years out. Unless it's in the contract you are still at the mercy of the svr.

AIB will be sold to private investors and there is also talk of Ulster being sold. In that case what will their strategy be and how will they treat their customers? It seems the only thing to do in that case is to switch again at that stage. If only there was a reasonable fixed tracker for 20 years like you have said before Brendan in the style of german or US mortgages I would take in in a heartbeat:)

(Ps very helpful thread for comparing what's on offer at the moment)
 
Berneseduke said:
Just wondering if this statement is still true in the second post on this thread:

"AIB:
Loan approval lasts for 12 months
No current account fees for the account from which you pay your mortgage. ( orth about €80 per year.)"

I am currently paying fees on the current account that the mortgage is drawn from.
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https://group.aib.ie/content/dam/aib/group/Docs/Press Releases/2015/AIB-extends-no-fees-banking-to-mortgage-customers-FINAL.pdf

Apparently the current account fee waiver should be have been applicable to existing AIB mortgage customers from last December. Are you still being charged fees?
 
Hello guys,

The price of the house I am buying is €350K and I have a loan approval from AIB for €230K - no broker involved. This approval is to expire in May.

Today I spoke with a broker and he said that KBC are the cheapest (3.30% v 3.55% with AIB). This is after the 0.20% discount when you pay mortgage from KBC a/c. As Brendan have highlighted, I asked the broker if I will get benefit of future cuts, the agent thinks that this has changed recently i.e. KBC WILL pass on the interest rates reduction to the existing customers too. He is to confirm that will me in the morning.

If KBC don't pass on the benefit of reduced rate - should I stick with AIB?
What if the broker is correct, should I go with KBC ?

TIA
 
Maybe KBC's policy has changed but any time I have raised this in the past they have been pretty clear - feel free to switch and come back to us again

Please do update us on what your broker says

In terms of KBC v AIB - it depends on your personal circumstances are and what you believe. Logically it would make sense to go with AIB if you believe they will continue to drop their rates. If not, KBC are lower !
 
Thank you. Sure - I will update you guys as soon as I will hear back from the broker.

if KBC do pass on the rate cuts to the existing customers then its no brainer to be with KBC. or is there anything else I need to watch out ?

with regards to what do I believe, I haven't a clue if the the rates will drop/raise in the future!
 
This is what the broker said,

"Yes new LTV variable rate customers will get benefit of any more future rates cuts- they also changed it so that those taking fixed rates initially (bar the 1 year fixed for some reason) revert to those lower tiered LTV variables when coming OFF a fixed rate option instead of higher roll off rates that applied formerly."

I have requested this to be in writing (from KBC).
 
I'll ask the question. AIB pass on the rate cuts to the existing customers - what way they work ?
 
SS expert said:
I might sound pedantic build I would want a definition of "future rates cuts"
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You are not pedantic at all. KBC is very clever in its wording and has tricked lots of people out of trackers.

I would want this wording from KBC.

"We will always give you the best rate on offer to new customers for your existing Loan to Value"

Brendan
 
I asked KBC this a few weeks ago, and they would not budge... if they have changed their policy fair enough.
I would be very wary going with KBC... This is the first I have heard that they are going to treat new and existing customers the same
 
Thanks Brendan - I will try getting that done.

SS - As per the broker, this is the new policy which isn't just publicised yet hence I have requested this in writing.
 
I would agree with all of that re KBC. I have also tried to no avail to get the new rate on my mortgage.

I am definitely not adverse to switching again in the near future, it is currently not financially practical for me to do so at 3.35% rates.

However, if Frank Money is targeting conservative lending at competitive rates I will definitely evaluate the proposal when it comes out, if they are given approval to operate!

I do believe KBC will have to do something in the event Frank Money takes off. A lot of the switching business in the last 12 months will potentially switch out again if Frank are in the region of 0.75% cheaper (maybe less) than KBC. It will be interesting to see what they do in that case, especially if their less risky asset book is being hit.


However, I would have no faith in KBC to pass on interest rate cuts to existing customers unless it was explicitly written into my mortgage agreement
 
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bbari1 said:
SS - As per the broker, this is the new policy which isn't just publicised yet hence I have requested this in writing.
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Just make sure its explicitly written into any mortgage agreement and is not just some email between you and the broker !
 
gnf_ireland said:
Just make sure its explicitly written into any mortgage agreement and is not just some email between you and the broker !
Click to expand...

Noted - I am not going by the email from the broker. The broker knows that I have an approval from AIB already and that I won't go ahead with KBC unless he gets this in writing from KBC.
 
Sarenco said:
It certainly would be a significant change in policy for KBC to commit to apply new customer rates to existing customers. I have my doubts.
Click to expand...

ptsb changed their policy after public pressure.

What about KBC's latest ad which says

"Just the lowest monthly mortgage repayments over the term of your new mortgage with a KBC current account"

Does that give bari1 and other New customers of KBC any comfort?

Brendan
 
Apologies @Sarenco I was in a rush last night and should have chosen my words a bit more carefully. I have edited the above post to reflect what I meant to say. Sincere apologies to anyone who felt misinformed by it.

However we can both agree on the main element of the discussion - I.e. Whether KBC have changed policy to allow existing customers avail of new product rates, which we are both doubtful of
 
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