KBC tracker to fixed - horrendous rate.

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peemac

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Just for anyone with a KBC tracker that had thoughts of fixing.

Don't even bother calling them.

They are only offering "standard fixed rates" (whatever these are) if you are on a tracker. These rates start at 3.9%

I have just over 5 years left. Tracker 0.95, LTV about 25%, so thought I'd take the 5 year fixed at 2.4% (had a current account with them) and that would bring me to near the end of the mortgage so unconcerned with BOI standard variable for the remaining 5 months.

Nope - they won't do that. Those rates are for all existing customer EXCEPT tracker customers.


I'm happy with my 0.95% and it was a 50/50 call to fix at 2.4%, But 3.9% - no thanks.

This post should save some people a phone call :D


Moderator's note: The following webpage contains the fixed rates that KBC offer to customers on a tracker:
https://www.kbc.ie/mortgages/existing-customers/pdh-offe/fixed-rate-tracker
The rates might make sense for some people on an expensive tracker. See the discussion in the below posts.
 
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Seems its in their terms and conditions of the ltv fixed rates

5. You may not avail of the Option if your mortgage account is currently on a Tracker Interest Rate. If only part of your mortgage account is on a Tracker Interest Rate, you may avail of the Option in respect of the portion of the mortgage account that is not on a Tracker Interest Rate however the aggregate amount outstanding in respect of all portions of your mortgage account will be used for the purposes of calculating the Loan to Value Percentage.

It is suggested that they will allow you return to your tracker at the end of the high fixed rate period, but the ecb would need to average over 3% for 5 years for it to make financial sense and whilst that is possible, it is very unlikely.



After reflection, it probably is a way of protecting a customer from giving up a tracker. I'm not the typical tracker holder as I only have 5 and a bit years left. Many others will have 13-18 years left on their trackers and this stops them making the error so many of us made in 2008.
 
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Thanks Peemac, hoping to tradeup next year. 1.1% Tracker , plus extra 1.1 to move my tracker... plus 1.25 increases ...3.45 already not withstanding a couple more rises ....
Have to see how the land lies in 6 months , BOI fixed wont save me will be caned either way
 
@peemac As pointed out by user @Ashmck in this post, the following webpage contains the fixed rates that KBC offer to customers on a tracker:
https://www.kbc.ie/mortgages/existing-customers/pdh-offe/fixed-rate-tracker
  • 2-year fixed: 3.90%
  • 3-year fixed: 3.95%
  • 5-year fixed: 4.00%
And a borrower will apparently get their tracker rate back at the end of the fixed-rate period (although the borrower would need to confirm that Bank of Ireland are obliged to honour this condition when they take over KBC's mortgages).

Obviously those rates don't make sense for your case but they might actually make sense for someone with an expensive tracker, e.g., a tracker with a rate of ECB + 1.75% or higher.
 
(Hope im not going too off point)

How about when us KBC tracker customers finally move over to bank of ireland ... i seen a list of BOI existing customer fixed rates v aib on a post by Brendan, are these available albeit unattractive ...

Or is there a similar nasty surprise waiting for us ...

Are we allowed to apply for the HVM offerings ?
 
Leighlinboy said:
How about when us KBC tracker customers finally move over to bank of ireland ... i seen a list of BOI existing customer fixed rates v aib on a post by Brendan, are these available albeit unattractive ...
Click to expand...
That's a good point. The rule that says that KBC tracker customers cannot switch to KBC's good fixed rates is part of the Ts&Cs of their fixed rates – it is not part of the tracker mortgage contract.

That would appear to mean that a KBC tracker customer will be eligible for BOI's fixed rates after BOI take over their mortgage – but any KBC tracker customer fixing with BOI must assume that they will not get their tracker rate back at the end of the fixed period.

The other issue is that BOI's fixed rates are likely to be higher than they are now by the time that BOI buy KBC's mortgages.

Leighlinboy said:
Are we allowed to apply for the HVM offerings ?
Click to expand...
No – the CCPC ruling on BOI's takeover of KBC's mortgages makes clear that KBC customers will not be eligible for BOI's "new business" rates (and that includes the High Value Mortgages).
 
Is there any indication of when Bank of Ireland will be taking over the KBC mortgages? Initially they said by Dec 2022 but as they have also said they will give us 60 days notice then that is obviously not happening.
 
Dublin Divorce said:
Is there any indication of when Bank of Ireland will be taking over the KBC mortgages? Initially they said by Dec 2022 but as they have also said they will give us 60 days notice then that is obviously not happening.
Click to expand...
It still has to get ministerial approval.

I suspect the transfer will be March/April next year at best
 
Does this mean that people who would look to trade up in new year are in limbo in terms of getting a new mortgage/moving mortgage for a few months ? Or will KBC extend offering mortgages until then ?
 
Got our notice of new rates today. With the tracker mover rate I'm now at 3.75%. not sure what their fixed rates for those moving off trackers are at right now but it can't be much higher with more rate rises coming
 
mikerd4 said:
Got our notice of new rates today. With the tracker mover rate I'm now at 3.75%. not sure what their fixed rates for those moving off trackers are at right now but it can't be much higher with more rate rises coming
Click to expand...

The following webpage contains the fixed rates that KBC offer to customers on a tracker:
https://www.kbc.ie/mortgages/existing-customers/pdh-offe/fixed-rate-tracker
 
So 4% for 5 years fixed and then a return to the tracker rate at the end?
I can't see rates dropping anytime soon but it's a proper gamble. I've heard talk of another .75 rate rise and another early next year. Big decision to be made
 
mikerd4 said:
Got our notice of new rates today. With the tracker mover rate I'm now at 3.75%. not sure what their fixed rates for those moving off trackers are at right now but it can't be much higher with more rate rises coming
Click to expand...
Check and see if a tracker mover can opt for their regular fixed rate. A 2% tracker is of no value. Possibly look at moving.
 
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