Before thinking of KBC....

B

bogstandard

Registered User
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Whilst it is mentioned in other threads, it probably needs a thread of its own.

If you are tempted by KBC's new lower rates for NEW customer be very aware that after a while you are no longer a "New" customer and will find that if they follow the path they have taken up to now, and that your rate will possibly end up to be one of the highest in the market.

Current customers have no choice but to pay 4.25% and or opt for some of the highest fixed rates in the market.

Remember your mortgage is for 25 - 35 years. Don't be fooled by headline rates, always check how the institution treats current customers - on that KBC fail miserably.
 
I was wondering about this recently and sent the following to KBC:

Hi,

I have a variable rate 60-80 percent LTV mortgage with KBC which was drawn down in September 2014 and my repayments have remained the same ever since, despite KBC advertising variable rate reductions.​

I have calculated my repayments to match a variable rate of 3.79 percent after the current account discount. But the Our Mortgage Rates page on the website shows a lower rate of 3.45 percent. Can you please tell me why this is?​

I note that the rates on rates page say they are New Customer rates but where are the Existing Customer rates. Also why is there a different rate for new customers. My assumption of a variable rate mortgage is that the rate will rise or fall with the banks lending rate. This doesn't seem to correspond to my experience or having different rates for variable mortgage rate customers.​



This is the response I got


Thank you for your email,

The variable rate reduction which was made in December effected all customers on the standard variable rate of 4.5%.

As you are not on this rate the rate reduction would not have affected your mortgage.

New business rates are a feature of all banks and are at the banks own discretion.

The existing standard variable rate for existing customers is currently at 4.25%.

The rate which you are on would have been a new business rate at the time and is not currently available to existing customers.

Should you have any further queries on your rate please do not hesitate to contact our customer services team on 1800 93 92 44.

​
I have been happy with KBC for most things but I do find this approach to variable mortgage rates deceptive. There are some variable rate customers on >4% rates, some on 3.79 like me and new customers are being offered 3.45% for the same mortgage but only the lowest rate is shown on their website.
 
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