KBC changes direction? Stopping discrimination against existing customers?

Discussion in 'The Fair Mortgage Rates Campaign' started by Brendan Burgess, Oct 26, 2016.

  1. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    31,183
    According to Charlie Weston in today's Independent, it seems that KBC has changed its policy and is allowing existing customers to get the same rates as new customers on the same LTV.

    Mortgage war: rates slashed as banks fight for borrowers


    "The bank has been criticised in the past for restricting some rate cuts to new customers only.

    But new borrowers, switchers and existing customers are being offered lower rates based on the value of the property in relation to the amount borrowed on it. This signals that KBC is moving away from offering different rates to new and existing customers.

    New customer rates are coming down from next Tuesday, with existing customers of the bank able to apply for lower rates from December 1."

    This is a huge achievement for the handful of people who have taken complaints against this practice to the FSO and the Central Bank. Well done!

    It is also an achievement of Michael McGrath's bill on mortgage rates. Maybe the Central Bank used a bit of moral suasion to tell them that the Consumer Protection Code obligation to treat customers fairly applies to them.

    Brendan
     
    tommyryan55 and stefg like this.
  2. Sarenco

    Sarenco Frequent Poster

    Posts:
    3,592
    I understand that KBC are losing market share as a result of their strategy of treating new and existing borrowers differently.

    Money talks...
     
    Username2012, Dauhee and gnf_ireland like this.
  3. gnf_ireland

    gnf_ireland Frequent Poster

    Posts:
    636
    Ultimately I imagine this change in practice is down to their falling market share, which has been reported by a few parties recently on this site. I feel this has been contributed to by the efforts of Brendan and Charlie Weston to highlight the practice and encourage others to consider alternatives to KBC. Credit needs to go to those, and all posters on this site over the last while

    I know the devil is in the detail here, so look forward to seeing what they have to say when the statements are released in detail from KBC
     
    Username2012, stefg and Sarenco like this.
  4. gnf_ireland

    gnf_ireland Frequent Poster

    Posts:
    636
    >>Homeowners will have to submit a valuation from a valuer approved by the bank, and the lower rates include an extra discount for using the bank's current account.

    I wonder how many people will actually change rates given they have to submit a valuation to get them, and more than likely pay for that valuation? Given the statistics on changes for P-TSB to the managed rate, I am nervous on the end result.
     
    Nordkapp likes this.
  5. bluestilton

    bluestilton Registered User

    Posts:
    12
    I currently have a complaint in with FSO regarding wording of their interest rate clause in my mortgage contract which I believe to be in breach of Unfair Terms in Consumer Contracts directive - took KBC almost a year to reply to original complaint. They have continued to charge us 4.25% despite reducing interest rates for other mortgage products. They are impossible to deal with and I knew there had to be a catch relating to this new offering. Have absolutely no intention of opening a current account with them or paying for a valuation at their behest. Recently received my files under a Data Protection request and found some of the original documents relating to the application had signatures which were not of our hand. Unfortunately we were not educated adequately on the matter at that time and placed our blind trust in a local accountant who was acting on behalf of a broker for KBC. I would love to find out if the broker and the accountant are still in receipt of commission from our mortgage.
     
    Dauhee likes this.
  6. username123

    username123 Frequent Poster

    Posts:
    1,244
    Im still not convinced i'd trust KBC in this regard though!
     
  7. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    31,183
    I have updated the Best Buys thread

    upload_2016-10-26_10-5-23.png


    upload_2016-10-26_10-5-2.png

    Excluding cash back deals, KBC is now the cheapest at all levels.

    Brendan
     
    Dauhee likes this.
  8. SBarrett

    SBarrett Frequent Poster

    Posts:
    2,088
    No, the broker gets a once off commission for putting the mortgage in place.

    Steven
    www.bluewaterfp.ie
     
  9. SBarrett

    SBarrett Frequent Poster

    Posts:
    2,088

    As is the requirement of any bank if looking for a lower rate due to a change in the LTV. After All, you do have to show the bank that the house is valued as you claim it is.

    It's funny how people will quibble over a €130 valuation fee when they can save thousands over years.


    Steven
    www.bluewaterfp.ie
     
  10. MUM2KIDS

    MUM2KIDS Frequent Poster

    Posts:
    88
    I just rang KBC to confirm the new rate for 50% LTV for a existing customer. Notwithstanding that the rates are being quoted on in press releases the KBC Customer Service team are not in a position to discuss these rates as they haven't been confirmed yet !!. The first person I spoke to offered to ring me in December to discuss the new rates and after pointing out that they were already being reported I was told someone would ring me next week when they have confirmed ...
     
  11. Silvio Dante

    Silvio Dante Frequent Poster

    Posts:
    127
    I'll happily pay valuation fee and switch current account to get off the 4.25% but as others have mentioned, KBC are a nightmare to deal with.
    Their phones are staffed by kids who are almost clueless and you just end up getting frustrated and angry as even the most routine of enquiries get mothballed.
    Maybe it will be different this time but I remain sceptical based on 6 years of bad experience.
     
  12. peemac

    peemac Frequent Poster

    Posts:
    118
    Last edited: Oct 26, 2016
    Just a word of caution for anyone with a tracker issue with KBC - if you are tempted by their new rates read the documentation very very clearly as signing up may preclude you from getting the tracker restored.

    The report also says that it will apply to variable rate mortgages once LTV is below 90%. That would suggest that if your mortgage is less than 80% of house value (probable for most pre2005 mortages on a 25 year term), your rate if movign current account to KBC is 3.2% and possibly lower if there are changes to this rate.
     
    Last edited: Oct 26, 2016
    Wardy7 likes this.
  13. Sarenco

    Sarenco Frequent Poster

    Posts:
    3,592
    [​IMG]

    The rates include the new 0.2% current account discount.

    KBC is offering €2,000 towards professional fees for switchers, movers, first time buyers, and buy-to-let investors and has extended its 50% home insurance offer for new mortgage customers until the end of the year.
     
    Dauhee likes this.
  14. Sarenco

    Sarenco Frequent Poster

    Posts:
    3,592
    There's no clawback so you're free to switch again without penalty if you find a better deal.

    It's a real shame that borrowers find switching such a painful process. The Central Bank is apparently examining this very issue so hopefully things will eventually improve in this regard.

    Ultimately, the ability of borrowers to refinance their loans is what keeps lenders honest in terms of the rates that they can charge.
     
    stefg likes this.
  15. peemac

    peemac Frequent Poster

    Posts:
    118
    For those who lost their tracker, the safe option is probably the LTV variable rate. For me it represents a saving of €315 per month, so hopefully there's no "special conditions" precluding return to tracker if tracker review is in cusomer's favour.
     
  16. Dauhee

    Dauhee Registered User

    Posts:
    37
    It appears that rates drop any time there has been mention of movement on the FF bill, and when Brendan does his magic and stirs things up in the media.

    With a gap this large in comparison to KBC and the others, there will have to be more reductions. It may reach a point where the cashback deals backfire and the likes of EBS are forced to fairly compete (and not screw over existing customers).
     
  17. Leighlinboy

    Leighlinboy Frequent Poster

    Posts:
    54
    If you bought in 05/06 fixed in 07 didnt get your tracker back you are nowhere near 80/90% :-( , i wont see a penny of a reduction of it ...... Ten years into mortgage , most of that at huge rate . Tracker review or nothing for many of us .

    Best of luck to anyone thats getting anything back
     
  18. Kerrygrrrl

    Kerrygrrrl Registered User

    Posts:
    17
    I have a question about this announcement from KBC. We moved to them in January 2015 from BOI to a rate of 3.55% on the basis of a LTV of less than 50%. I was in the middle of the process of moving to AIB when this was announced today so I am delighted as its a lot less work for me, even if I do need to get an up to date valuation. But, I wonder will I actually need to get an up to date valuation as obviously the LTV is less than 50%, based on house values and significant over payments? I will get one if I have to but would prefer if I didn't have to. Any thoughts?
     
  19. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    31,183
    I suspect that if your original LTV was under 50%, they would respect it.

    But you will have to ask them.

    Brendan
     
  20. gnf_ireland

    gnf_ireland Frequent Poster

    Posts:
    636
    Technically speaking, the rate you moved to in January 2015 was a <60% LTV, as they did not have a <50% one at the time. This is the same rate I am currently on, and the exact same scenario

    I am in the same boat. On the old valuation I have a LTV now of about 22% and with an updated valuation it would be less than 20%. Obviously I feel a new valuation is just an extra cost on myself, but I do plan to ask them if I need to get one done. Hopefully not !

    Its the only way, but will leave it a week or so until things ease off and the agents have been properly briefed accordingly.