KBC now offering €3,000 to switchers

[fauxblade]

Is the advice to steer clear of KBC still valid. From looking at my options they seem to have the best variable rates and are offering €3000 for switching with no clawback if you leave them at any time. From a pure numbers point of view they look like the best buy?

I'm failing to see the downside, if they do drop their rates for new customers and not existing customers that would just prompt me to get back hunting for another switcher deal?

 

[Brendan Burgess]

My advice would be to steer clear of any lender which does not commit to automatically passing on rate cuts to existing customers.

Sure KBC says that you can apply for the new customer rate but you must sign an agreement giving them the right to discriminate between new and existing customers.

Sure you can switch if they don't. But, in practice, most people don't switch and some can't switch.

Brendan

 

[Brendan Burgess]

I had missed the fact that KBC is paying €3,000 to switchers.

Get €3,000 towards your professional fees (legal and valuation fees) if you draw down your mortgage with KBC between 2nd May 2017 and 30th September 2017 **

**A contribution of €3,000 towards professional fees (legal and valuation costs) is available if the Loan is drawn down between 2nd May 2017 and 30th September 2017 only. Customers drawing down in stage payments will only qualify for the contribution if the initial stage draws down between 2nd May 2017 and 30th September 2017. The payment of the contribution will be made by electronic transfer within 30 days of the drawdown of the Loan to the account from which the monthly mortgage repayment is or will be paid. This Switcher offer excludes Buy to Let properties. The Lender reserves the right to amend, modify, cancel, withdraw or change the terms on which this contribution is available at any time at its sole discretion.

EBS

EBS offers 2% cash back up to 30 December 2017


If you are borrowing €300,000 - you will get €6,000 from EBS but only €3,000 from KBC.

But if you are switching €100,000, you will get €1,000 more from KBC and a lower initial rate.


KBC won't pass on future rate cuts automatically to you, but you can request them.

At some stage, either the Central Bank or the FF Bill will oblige lenders to pass on rate cuts automatically to existing borrowers.

So if you are confident that you are going to complete the switch and draw down the money before 30th September, maybe KBC is a better choice?

Brendan

 

[stefg]

"Get €3,000 towards your professional fees" seems a little unusual, are professional fees that high? When I investigated moving (though unfortunately I could not qualify for a move due to be self employed) I was quoted less than €1,400 for everything? So maybe the offer looks better than it is because the legal fees will probably be lower? Maybe there are other fees I'm not aware of or I just got a particularly good quote

 

[Brendan Burgess]

Hi stefg

I took this to mean that it will be paid irrespective of what your legal fees are.

Otherwise they would have worded it "We will pay your valuation and legal fees up to a maximum of €3,000"

 

[stefg]

I took this to mean that it will be paid irrespective of what your legal fees are.

Otherwise they would have worded it "We will pay your valuation and legal fees up to a maximum of €3,000"

I wouldn't assume anything with banks terms and conditions, especially KBC. I do wonder why it says "towards professional fees (legal and valuation costs)":

A contribution of €3,000 towards professional fees (legal and valuation costs)

If it's just €3,000 would they not say a reward or cash payment etc? It seems odd to me to include the professional fees when other banks just offer cash incentives.