KBC Mortgage transfer to BOI

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bluestilton

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Apologies if this is posted in the wrong category. Our home mortgage is with KBC: 5 years 7 months left, balance owing €89,731, interest rate 4.25% variable. Repayments currently €1425 per month. I am concerned with the move to BOI that our repayments could go up and lord knows we have paid enough for this mortgage over the years. We are both in mid 50s and want to see an end to repayments. I spoke with KBC this morning and they suggested getting property revalued and going for their package of fixed rates which are between 2.6 and 3.9% currently this would give us protection on the interest rates for five years. I know this will not make much difference to monthly repayments given the term left on the mortgage. What would you advise is the best option.
Many thanks.
 
bluestilton said:
interest rate 4.25% variable
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Why are you on a variable rate? Regardless of whether KBC are leaving or not.

Fix and benefit from lower rate. Repayments should reduce by c. 60 per month at 2.6%

You might check your remaining term, I'm calculating a different repayment amount based on info you provided.
 
Thank you Red Onion. I rang KBC this morning remaining term is 5 years 7 months. Mortgage was topped up several years ago not sure if this would impact on the repayment calculations. Top up was taken out near the end of the crazy times to buy a small amount of land (of poor quality) attached to a BTL property. The buy to let property is with Pepper and we are making the repayments on it (€72k balance owed, term left 116 months, repayments €761 monthly at 5.15%). Am trying to figure out my best move with both properties to make life a little easier financially.
 
I don't know could your rates go much higher than 4.25% with anyone to be honest with you. You are overpaying significantly on the mortgage. I hope you haven't been on the variable rate for very long bluestilton. If your LTV is less than 60% (which I assume you are) the then the variable rate is 3.20% (with another 0.20% reduction if you have a current account with KBC too). The variable rate with KBC for LTV 80-90% is still only 3.50% (again with another 0.20% reduction if you have a current account with KBC too) so I don't know where the 4.25% rate is coming from. Are you certain this is the rate you are being charged????

If you want a fixed, KBC do a three year fixed rate of 2.45% and a five year fixed rate of 2.60% for mortgages with LTV less than 60% (again I'm assuming this is applicable to you). And don't forget, if you have a current account with KBC, you get the three year fixed rate for 2.25% and the 5 year fixed rate for 2.40%.
 
bluestilton said:
Thank you Red Onion. I rang KBC this morning remaining term is 5 years 7 months. Mortgage was topped up several years ago not sure if this would impact on the repayment calculations. Top up was taken out near the end of the crazy times to buy a small amount of land (of poor quality) attached to a BTL property. The buy to let property is with Pepper and we are making the repayments on it (€72k balance owed, term left 116 months, repayments €761 monthly at 5.15%). Am trying to figure out my best move with both properties to make life a little easier financially.
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Fix out 1) are you actually paying 4.25% variable to KBC and 2) if you are paying 4.25% variable, then why are you paying this, when KBC variable rates range from 3.20 to 3.50%??? And if you have a current account with KBC, their variable rates range from 3.00 to 3.30% depending on your LTV. So where 4.25% is coming from is stumping me!!!!
 
I stand corrected. I didn't think KBC discriminated against existing customers like BOI and PTSB. I'm really surprised by this, never knew it.

If a "new" customer selected the varible rate of 3.20% for LTV less than 60%, when do they cease to be a "new" customer and go onto the 4.25% rate?!
 
bluestilton said:
Mortgage was topped up several years ago not sure if this would impact on the repayment calculations.
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I have seen issues before with KBC topups and calculation of repayment. If memory serves me correctly, you end up with 2 sub-accounts, and they can have different repayment dates.

I think given how ridiculous their SVR is, your best option is to fix, either with KBC or by switching. You should have received a letter annually telling you there were better rates available to you. You'll recover the cost of a valuation in 2 or 3 months with lower rate!

Do you just have the one BTL property?
 
PebbleBeach2020 said:
If a "new" customer selected the varible rate of 3.20% for LTV less than 60%, when do they cease to be a "new" customer and go onto the 4.25% rate?!
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They would roll to the relevant LTV rate specified in their contact.
Customers who drew down before the LTV variable rates were introduced will roll to SVR, as specified in their contract.
Every customer should receive a letter at least annually outlining better rates that would be available to them.
 
You have a mortgage of €90,000

The interest rate is 4.25% so you will pay about €3,800 this year

If you opened a current account and fixed for 5 years, it would be 2.4% or €2,160

So fixing and opening a current account would save you €1,700 this year.

The saving will reduce as you reduce the capital, but do it immediately.

You don't need to worry about moving to Bank of Ireland as the rate will be fixed.

Brendan
 
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