Brendan Burgess
Founder
- Messages
- 52,144
If you have a standard variable rate with Bank of Ireland, you are paying 4.5%. Officially, they do not allow existing customers to avail of the lower LTV rates for new customers e.g. 3.9% for those with an LTV < 60%. However, if you tell them you are moving to KBC, they will do a deal with you - see
BoI cut my SVR when I told them I was moving to KBC
I called BOI 2 weeks ago to advise them of above to see if they could do anything however they came back few days later and told me they would not be able to give me a rate reduction.
I presume that you have a clean credit record?
I think you should ask your solicitor to write to Bank of Ireland telling them that you are moving to KBC. She should ask for a redemption value and the deeds. I suspect that you will then get a call from BoI offering you a deal.
however I don't hold out any hope of BOI offering to drop rate by 1% to beat KBC or even matching 3.55% to keep my business.
Dgray,
KBC currently offer 3.55% on their best LTV offering. AIB have effectively matched that this morning (via EBS), which is a very interesting move. AIB have also effectively matched it with a 3.6% rate.
This will definitely put the pressure back on KBC to make the next move. They were getting reasonable levels of business as they were the lowest in the market (by a margin). Now they will have to go lower if they wish to maintain that momentum.
But with AIB & Ulster Bank offering any cuts to both new and existing customers, my view is KBC will have to do the same or they will experience a drop in their level of new business to AIB and Ulster. If all 3 currently offer roughly the same rate, I know I would lean towards Ulster and AIB who have shown that they pass on cuts to existing customers, whereas KBC have not proven that yet. Sadly my crystal ball did not show this at the time when I started the switching process.
From a switching point of view, KBC are still offering an incentive to switch (as are PTSB and UB) - AIB/ESB are not so you have to factor in the ~€1500 cost of moving your mortgage.
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