Will BoI honour the 0.2% mortgage rate discount KBC customers get?

D

Daragh29

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Brendan Burgess said:
Well they pay brokers 1% for getting them business at market rates.

They will be paying 103.6% for tracker mortgages yielding a lot less.

And they will be buying fixed rate mortgages which are fixed at rates much lower than BoI charges.

And I would guess that KBC customers are more mobile - more likely to move on when the fixed rate ends.

Brendan
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Will there be any obligation for BOI to provide the 0.2% discount?
 
Re the 0.2% discount mentioned above by Daragh29, I presume this refers to the 0.2% discount on the mortgage rate for having a kbc current account, I am wondering the same thing. It is not included in the actual fixed rate in the contract so my guess is they won't but I wonder if they'll give it if you move current account to BOI?

Is there any way of finding out ahead of the move?
 
Your terms and conditions remain unchanged.

If KBC makes it impossible for you to keep your terms and conditions because they no longer offer you a current account, they will not be able to withdraw the discount.

Brendan
 
The fact that €4.4 billion of deposits are moving suggests there is a chance they will keep honouring it.

It's not as if BOI need the deposits. But like all banks they probably see a current account as a first step to selling people other products. Be strange then to roll back on the discount in that situation.
 
Brendan Burgess said:
Your terms and conditions remain unchanged.

If KBC makes it impossible for you to keep your terms and conditions because they no longer offer you a current account, they will not be able to withdraw the discount.

Brendan
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I'm in this situation also. I presume it is important to retain the current account until KBC make it impossible not to. So my mortgage will be transferred to BOI while we still have accounts with KBC to meet the condition.
 
Am I right in thinking it could be years? As there will be hard to find people etc. I don't think the bank can sell accounts the same way they can sell loans.
 
Hi faketales

It won't be years.
They have already applied for permission for the transaction to the Competition Authority. That will come through early next year, I imagine.

The KBC needs to give 6 months' notice to current account customers.

Ulster Bank has told its customers that all accounts will be closed on the expiry of the 6 months and they will send them a cheque.

The problem will be the long queue in opening an account with another bank.

Brendan
 
Brendan Burgess said:
The KBC and BoI deal is much further advanced that Ulster Bank and permanent tsb.

So, yes KBC customers should open a new current account.

If you are getting the 0.2% discount on your mortgage from KBC you should keep your KBC account open.

Brendan
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Do you think those getting the 0.2% discount should continue on with their KBC current account as normal, on the assumption that being forced to move (eventually) will mean they get to keep the 0.2% discount when the loans move to BOI?
 
Brendan Burgess said:
Very good point. Keep your KBC account until it is transferred.

Brendan
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Do you mean keep your KBC current account but also set up a new one with BOI or AIB?

My situation is that i am currently trading up. I am 3 years into a 10yr rate with KBC so the Break Fee is too high to swallow so i am stuck with them. A Portal Loan will apply, whereby i temporarily pay the Break Fee until drawdown of the new loan, at which point it is refunded. The 10yr rate will reset to Day #1 with 10 full years to go.

Should i be setting up an alternative current account now or should i sit still until forced to do so, in case i might lose the 0.2% discount?
 
1) You will need a new current account as KBC ones will be closed
2) You should open it with Bank of Ireland as that might be a condition of retaining the 0.2% discount

You should probably put your numbers up in a separate thread to get a second opinion on your strategy re the break fee.

Brendan
 
Brendan Burgess said:
1) You will need a new current account as KBC ones will be closed
2) You should open it with Bank of Ireland as that might be a condition of retaining the 0.2% discount

You should probably put your numbers up in a separate thread to get a second opinion on your strategy re the break fee.

Brendan
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Valid point regarding BOI. That would probable be seen as a reasonable approach. Although I had free banking with KBC. An account with BOI costs 6euro a month. Pretty expensive but doesn't seem to be a way to avoid it. Of course loosing the 0.2% would cost me approx. 25euro a month.

When do we think we might have clarity on that condition? It may impact who I open an account with. I'd like top open with PTSB.
 
I never closed my BOI current account when I switched to KBC a year ago, due to hassle and time taken to switching direct debits in lockdown; then there was the announcement of BOi buying out KBC !!! , I had to laugh.... so I just left it. Hoping that if there's a requirement to open a BOI account to retain the 0.2% discount that I won't be penalised for already having an account, but wouldn't hold my breath knowing all the banks previous performance..........
 
Stitcher said:
I never closed my BOI current account when I switched to KBC a year ago, due to hassle and time taken to switching direct debits in lockdown; then there was the announcement of BOi buying out KBC !!! , I had to laugh.... so I just left it. Hoping that if there's a requirement to open a BOI account to retain the 0.2% discount that I won't be penalised for already having an account, but wouldn't hold my breath knowing all the banks previous performance..........
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Uneducated guess but I imagine the condition won't be to open an account but may be the same as KBC current condition that x amount is paid through the account. Basically that you get paid into the account.
 
I heard on the radio that Brendan was making a submission on the KBC to BOI sale. Was this .2% discount brought up as part of this?

Does anyone know what the KBC mortgage contract says in regards to the current account .2% discount ? Is it in the contract that as long as you have a current account you get the discount or is it not? This is the only thing BOI will look at.
 
Tobyboy said:
I heard on the radio that Brendan was making a submission on the KBC to BOI sale. Was this .2% discount brought up as part of this?

Does anyone know what the KBC mortgage contract says in regards to the current account .2% discount ? Is it in the contract that as long as you have a current account you get the discount or is it not? This is the only thing BOI will look at.
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I thought I was benefitting from the 0.2% but can't find mention of it in my mortgage contract or related documents.
My mortgage says the rate is 3.2% and that is the rate that i appear to be paying. Has anyone got anything in writing from kbc on the terms of the discount?

I plan on giving them a call later in the week anyway so will ask then but would be interested in hearing other experiences before then.
 
Follow the instructions here. They had a deadline of 10th November, but they are unlikely to ignore any submissions as I doubt that they will get many.

CCPC to carry out a Phase 2 Investigation of BoI's deal with KBC

https://www.ccpc.ie/business/ccpc-to-carry-out-a-phase-2-investigation-of-bank-of-irelands-proposed-acquisition-of-certain-assets-and-liabilities-of-kbc/ CCPC to carry out a Phase 2 investigation of Bank of Ireland’s proposed acquisition of certain assets and liabilities of KBC OCTOBER 20, 2021...
www.askaboutmoney.com

If a few customers of KBC make submissions, it will make the point to the CCPC that this is not a theoretical issue.

Brendan
 
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