KBC cuts Fixed rates

Discussion in 'The Fair Mortgage Rates Campaign' started by Brendan Burgess, Jul 17, 2018.

  1. Brendan Burgess

    Brendan Burgess Founder

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    Last edited: Jul 17, 2018
    upload_2018-7-17_10-13-4.png

    *all rates incorporate 0.20% current account discount available to customers
     
    Last edited: Jul 17, 2018
  2. Brendan Burgess

    Brendan Burgess Founder

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    Last edited: Jul 17, 2018
    Here is a comparison
    upload_2018-7-17_10-29-2.png

    Ulster Bank gives €1,500 cash back to all customers
    KBC gives €3,000 to switchers only.

    If you are applying for a new mortgage, the best deal is Ulster Bank's 2.3% for two years or their 4 year fixed at 2.6% because of the €1,500 cash back.

    If you are switching, then KBC is probably better. The additional €1,500 is worth .75% on a €200k mortgage.

    If you are an existing KBC customer, then it's probably not worth switching. But you should apply for these lower rates.

    Brendan
     
    Last edited: Jul 17, 2018
  3. Bronte

    Bronte Frequent Poster

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    The 5 year fix at 2.6% is pretty good in an Irish context. For 60% loan to value. Unless of course one thinks rates are going to drop further. But then there's Brexit and what effect that might have on things. Still it's pretty cheap money.
     
    Last edited by a moderator: Jul 17, 2018
  4. Sarenco

    Sarenco Frequent Poster

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  5. misemoi

    misemoi Frequent Poster

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    I can't see anything about overpayment of a KBC fixed rate loan on their website, anyone got info on that ?
     
  6. RedOnion

    RedOnion Frequent Poster

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    Their terms and conditions allow overpayments up to 10% of the initial balance over the fixed period, before calculating if a break fee is due.
     
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  7. Zenith63

    Zenith63 Frequent Poster

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    Wonder if somebody could help us understand how the break fees are calculated, I'm in a 3 year KBC fixed at the moment (2 years to go) so am curious how it all falls out. They say their break fee is calculated as follows -

    So take an example (that just so happens to be close to my scenario :) ). Lets say you're 12 months into a 36 month fixed term at 3% on €400k and now the KBC release a 2.6% 3 year fixed rate offering. Would the break fee be -
    (0.03-0.026) x (24/12) x €400k = €3200

    I know I could ask KBC to provide a break fee calculation, just curious to work it out myself, but the main stumbling block seems to be the definition of "wholesale rate" - is it the fixed rate for the agreement you're in, or their variable rate at the time etc.
     
  8. RedOnion

    RedOnion Frequent Poster

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    Hi @Zenith63
    The wholesale funding rates are interbank rates available to KBC. It's difficult to get exact figures without paying for data from somewhere like Bloomberg. However, Swap rates are a very close proxy.
    So when you fixed, the 3 year rate was about 0.01%.
    Now the 2 year rate is -0.17%
    So: 400k*0.18%*24/12=1440

    But you would save 3200, so better off by 1760 over the 2 years.

    You'll need to get the latest exact break fee from KBC, but looks worthwhile.

    Would you mind updating once you've break fee so we can do an example for others?
     
  9. Zenith63

    Zenith63 Frequent Poster

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    Just gave KBC a call, they said they are inundated with calls from people looking to break fixed contracts :). Reckons 24-48 hours for turnaround of a calculation.

    One thing to note is that you need a property valuation from within the last 4 months to sign-up to a new fixed rate (to show you are within the requested LTV band), which costs €127.

    Will update when I hear more...
     
  10. Paul Reilly

    Paul Reilly Frequent Poster

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    Is it possible to switch to any of these products with just loan = to equity
     
  11. mccoypat94

    mccoypat94 Frequent Poster

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    very tempted by the 5 year fixed, however I currently have a case 'pending' with the FSO.

    If I was to take up the fixed rate offer would that affect my case in anyway?
     
  12. Brendan Burgess

    Brendan Burgess Founder

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    What sort of case is it and why might it be affected?

    If it's for the restoration of a tracker it might be better to wait. Of course, you would argue, "I would not have fixed for 5 years had I known I was going to get my tracker back."

    But in general, I believe in keeping things simple. Why not fix for one year as the FSO might not have decided by then anyway.

    Brendan
     
  13. mccoypat94

    mccoypat94 Frequent Poster

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    Yes Brendan , restoration of Tracker rate, argument based around the 'flyer' .


    Im currently in absolute limbo as are many, and you are probably correct 1 year might be an option.

    PK believes my case is strong but there is no certainty that I will have a postive outcome , so in the short term I am eager to save as much as I can on my mortgage.
     
  14. mccoypat94

    mccoypat94 Frequent Poster

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    To avail of a fixed rate its complusary to get a valuation, even though I only had one done in 2017
     
  15. mccoypat94

    mccoypat94 Frequent Poster

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    To take a fixed rate KBC insist on direct debit payments, I currently pay my mortgage by SO weekly rather than monthly and don't want to change.
    Are they within their rights on this?
     
  16. peemac

    peemac Frequent Poster

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    Last edited: Aug 15, 2018
    They can ask you to jump about like a monkey as a condition for a rate if they like.

    Why not change the mortgage payment date to the 28th of the month? - That can be done with a phone call


    On taking a fixed rate and then if you get a tracker back - the fixed rate becomes void. Or at least that was my own experience
     
    Last edited: Aug 15, 2018
  17. Coat

    Coat New Member

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    fixed

    I just phoned KBC there and was quoted a break fee of €1141.23 which is valid for ten working days. He said I would need a property valuation as expected .Will I need the services of a solicitor again does anyone know as I'm not switching mortgage provider?
     
  18. Concrete

    Concrete Registered User

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    Snotzer - no, you don't need a solicitor.
     
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  19. Coat

    Coat New Member

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    Thanks RedOnion. Much appreciated.
     
  20. gsp119

    gsp119 Registered User

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    Brendan , would you mind me asking
    what below refers to
    restoration of Tracker rate, argument based around the 'flyer' .