gnf_ireland
Registered User
- Messages
- 1,441
You are correct, it is an extraordinary generous offer for savers
I would not classify it as generous. KBC are relending money at a mortgage rate which is fleecing their customers.
"The extra amount is deducted from your capital balance and will result in an interest saving for you. Please note: the term of your mortgage will not be reduced with this method of overpayment.
If you wish to redraw these funds at any time please send us a written instruction signed by all parties to the mortgage. Please be advised, if you redraw funds from your mortgage account you capital balance will increase thus increasing your scheduled monthly repayment"
This is like the offset mortgages of years gone by.
This really is a significant feature of the KBC offering that I wasn't aware of. I wonder why KBC don't make a bigger deal of this?
This is a huge thing that I was unaware of. So basically, if I owe KBC €500k and I have €100k sitting on deposit earning nothing, I can pay the €100k in, leaving €400k outstanding, but with scope to access the €100k virtually on demand?
Q - does the LTV interest also fall in line with the overpayment. Going from their 80% LTV rate to their <50%?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?