KBC offering €1,000 to switchers

L

LDFerguson

Registered User
Messages
4,660
KBC have announced that they will pay €1,000 towards legal fees to someone who switches their mortgage (home-loan or residential investment proeprty) to them and draws down the loan before 30/4/2014. There's a 3-year clawback if you pay off the loan within 3 years. They're also offering a year's free home insurance if you draw down a home loan (owner-occupiers only) with them before 30/4/2014.

It's been a while since such offers were out there. In the days when tracker mortgages were available, these sort of offers were very attractive, as you could calculate the potential savings in repayments by switching over the full life of the loan. Now you can only calculate the potential savings with certainty over a fixed-rate period as Standard Variable Rates can be changed by KBC at any time.

That said, all competition is good competition...
 
There's no such thing as a free lunch.

If any person is thinking of been bought by this, ensure you read the small print.
 
You would have to stay with them for 3 years based on their other offers. It saves us €100 pm, our insurance is just paid so I am not sure if they will give us extra for legal fees.
 
irishguy said:
our insurance is just paid so I am not sure if they will give us extra for legal fees.
Click to expand...

I doubt it. I would guess that the insurance isn't costing KBC much.

I'd imagine Zurich are providing this at minimal cost in the hope that most people will stick with them after the first year.

Therefore, if you opt out of the insurance offer, they're unlikely to offer you anything in lieu.

KBC would also make ongoing income from all the policyholders that stick with Zurich given that they are, in effect, the broker.
 
irishguy said:
Well if they offer €1000 for the legal fees then it's covered....
Click to expand...

Yes, that's the general thrust of the promotion. Many solicitors will do the conveyance on a re-mortgage for under €1,000 all-in (including fee, VAT and legal outlays) and the valuation costs €130. So the cost of a re-mortgage is usually around €1,100 and KBC are offering cash-back of €1,000.
 
No good to me at the moment but if this is the start of the availability of switching options then it is great. Surely we will see more and more of this as non pillar banks try to poach the most attractive customers.

I'm on a stinky -aib 4.5% variable. In a few years I should be close to 40% equity and kbc have that at 3.85%

Not much but worth 650 euro a year per hundred thousand borrowed.
 
finnie said:
No good to me at the moment but if this is the start of the availability of switching options then it is great. Surely we will see more and more of this as non pillar banks try to poach the most attractive customers.
Click to expand...

You'd certainly hope so. As far as I know Investec should enter the Irish mortgage market this year which will bring a bit more competition. Competition is good.
 
I read somewhere in the paper, either Sunday business post or independant that they are no longer entering the Irish market. They didn't give a reason
 
finnie said:
I'm on a stinky -aib 4.5% variable. In a few years I should be close to 40% equity and kbc have that at 3.85%

Not much but worth 650 euro a year per hundred thousand borrowed.
Click to expand...

You shouldn't assume they won't look at you until yo'ure at 40% equity. Nothing ventured nothing gained. 650 Euro per year for 3 years, and house insurance too. Not to be sniffed at. The fact they are offering this means they are open for business, they want people like you. Might make your own bank offer you a lower variable if they even think you are switching, so talk today to both AIB and KBC.

That 650 Euro could go back in again off your capital etc. So it can be worth more than you think.
 
@LDFerguson - I contacted KBC about this but they said they couldn't switch my mortgage based on income etc.

I don't have a particularly huge mortgage (with BoI) and have a reasonable amount of equity - any point trying through a broker?
 
Hi, I am thinking of switching my mortgage from AIB to KBC at the moment. They have extented the €1000 legal fees offer to the end of June. I do get the impression from dealing with them, though that they would be very happy not to pay the €1000.Has anyone switched to them and received the €1000 from KBC ? Thanks.
 
shweeney said:
@LDFerguson - I contacted KBC about this but they said they couldn't switch my mortgage based on income etc.

I don't have a particularly huge mortgage (with BoI) and have a reasonable amount of equity - any point trying through a broker?
Click to expand...

Apologies - didn't see this until now. Put up details and I can have a look if you like.
 
You must log in or register to reply here.
Back
Top