KBC Rate Query

C

Ciaran2010

Guest
Hi,

I have a mortgage with KBC and got a letter on Oct 2009 saying that our 2 year fixed term was up (5.26%) and we were now on a rate of 2.25%.

This letter makes no reference to whether this is a variable or tracker rate but our original offer letter stated we would move to a variable rate once the fixed rate term was up.

But their current variable rate is 3.6%, and from what previous posts on this and other fourms were saying my 2.25% would equal the tracker rate of 1.25% on top of the ECB rate of 1%.

Could they have moved us to a tracker without telling us? If it’s a mistake could they look for back payments? I haven’t contacted the bank in case it’s a mistake on their part (I should be so lucky…)

Thanks

Ciaran
 
Hi Ciaran,

I was on to KBC this morning re coming off my fixed rate and they quoted 2.25% as their variable rate.
 
Thanks HidiHo,

I wonder why I didn't have my variable rate increased in April when they put up their rates?

I wonder should I ring them to find out or just leave it be?
 
Well the rate is correct as of today so you should be safe enough to ring up and enquire but I'd probably not look a gift horse in the mouth and leave well enough alone!
 
So you took out the mortgage in 2007, is that correct? I would say then that it is a tracker rate, as I took out my mortgage in January 2008 and when my fixed rate is up next January, I am moving to a tracker rate.
 
Cheers Paddy, that would be great if its the case. Tempted to call to find out. Ya, I took out the mortgage in 2007 and fixed at 5.6% for 2 years.
 
If you could write what it says about the variable rate on here, it would be great. Should mention something about variable rate no more than 1.25% above the REFI rate, or something along those lines.
 
My letter just says - "An adjusted interest period has now expired on your mortgage account. Your repayment for 1st Nov 2009 will be charged as follows:

Balance: €XXX
Term (months): 396
Interest rate: 2.25%
Repayment: €XXX
Fixed Rate Y/N: N
 
Ciaran2010 said:
My letter just says - "An adjusted interest period has now expired on your mortgage account. Your repayment for 1st Nov 2009 will be charged as follows:

Balance: €XXX
Term (months): 396
Interest rate: 2.25%
Repayment: €XXX
Fixed Rate Y/N: N
Click to expand...

This looks like a tracker to me, as their current tracker rate is 2.25% ie ECB 1% and 1.25%.

I imagine that their current variable rate is higher than 2.25%??
 
Ciaran2010 said:
My letter just says - "An adjusted interest period has now expired on your mortgage account. Your repayment for 1st Nov 2009 will be charged as follows:

Balance: €XXX
Term (months): 396
Interest rate: 2.25%
Repayment: €XXX
Fixed Rate Y/N: N
Click to expand...

Hi Ciaran. Sorry, I meant what it says about the variable rate on your loan agreement. Like poster above says, it does look like a tracker anyways.
 
Paddy, just dug out the offer letter and eventually found the relevent bit and yes, I'm on a tracker!

It says the rate won't exceed 1.25% above the REFI rate for the rest of the term. Happy Days!
 
In a similar position to Ciaran2010, i think. Took out mortgage in September 2007, fixed rate for 3 years which is up in October. Saw this thread and checked my loan offer paperwork which states "at the end of the fixed rate period the interest rate shall be no more than 1.25% above the prevailing European Central Bank Main Refinancing Operations Minimum Bid Rate for the remaining term of the loan".

Is this a tracker?? Have been fuming for last couple of years that we didn't opt for a tracker rate when securing mortgage originally. It's a bizarre twist of fate if we end up with one by default after all!
 
We got the same letter after coming of a one year rate. However our rate has gone from 2.4 to 3.8. I just checked their mortgage fixed rates and the fixed ones are cheaper than the variable. Is there a reason for this? Should we fix, and if so, for how long. I know it's all relative, but any advice would be greatly appreciated.
 
I got the same good news. Was on a fixed 5.45% with KBC since 2007. Theres a clause in our contracts that means once our fixed rate ends our rate can never go above 1.25% of the ECB rate i.e 2.25%. I was delighted and reduces my mortgage payments significantly. Its great news!

You can fix again then if the ECB rate goes mad.
 
you just need to be careful to ensure that if you do fix again that you will revert to tracker. Just because in the past they had that clause in the fixed agreement, there is no guarantee that by you looking to fix they dont deem this to be a change in the original contract.

Remember you fixed in 2007 and the world is a different place now, and banks are trying to rid themselves of trackers.
 
cloughy said:
you just need to be careful to ensure that if you do fix again that you will revert to tracker. J
Click to expand...

There was a piece in yesterday's Indo on this.

KBC, NIB and Irish Nationwide allow you to fix and revert to a tracker, the rest do not.

[broken link removed]
 
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