Key Post Should an existing KBC mortgage holder do anything now in advance of the sale of their mortgage?

If I had the 20% that would be great! my over payment will be more like 7%. Then maybe more in a few years. Hence being able to do another 7 later would be good. But I'll be nearly done then. Counting down the last few years now thank goodness.
 
I switched last October, 70k mortgage left on a 325k house. I'm not gone from been PAYE to self employed so I am proper goosed. I had it set to fixed for 3 years with KBC too. :(
 
Hi Yop

1) If you fixed last October, you still have 2 years and 4 months before you might lose due to the sale to BoI.

2) I presume you don't have too many years left on the mortgage, so you are mainly paying off capital, so your balance will be a lot less than €70k when the fixed rate is up.

3) let's say that the balance is €50k in 2 years and 4 months, and that BoI is 1% more expensive than KBC would have been, then you will be losing €500 a year. Not nice, but not quite being "goosed" either.

4) You should ask for a break fee. It might be zero as Stitcher's was. In which case you could break out now and fix again for a longer term.

Brendan
 
Just to say that I have now refixed with KBC for 3 years. It all went quite smoothly. I will enquire again in another few months. I know that moving to a BOI variable eventually after the fixed rate is up wont be a major cost as term remaining will be low but I am damned if I will give the banks any more of my hard earned money than I have to.
 
I wonder what will happen to KBC 0.2% current account discount once mortgages will be moved to BOI? Could be ignored by BOI and lots of people will have 0.2% rate increase? (because there will be no KBC current account)
Will BOI be obliged to keep KBC's 10% overpay rule without penalties? If it is not part of contract then most likely it will be abolished?

Current KBC 2 years fix rate for LTV 60-80% is 2.3% but not 2.25%

KBC told me I can reduce term of my mortgage without penalties (they sent me "reduce term form"). But I don't understand is it possible only during fixed term prolongation (my 2 years fix will end in 2 weeks) or any time.
 
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Sorry if this has been answered elsewhere, (and I see it overlaps with Lucaner's question) but is there any chance that BOI might make their overpayment terms available on fixed mortgages transferred from KBC?

We currently have 7 years left on a 2.95% ten year fixed mortgage. KBC's terms only allow us to overpay by 10% over the entire ten year term, whereas I think BOI permit overpayment of 10% per year.

So, yeah, long shot I suppose, but I'm wondering whether I might be able to pick and chose the terms I like.

Is there any way it might suit BOI to let me clear it earlier?
 
evil_g said:
Is there any way it might suit BOI to let me clear it earlier?
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With BoI I chose the 10% overpayment without penalty option when my rate was 3.0% or 3.1%. When the rate went to 2.9% they allowed me to keep the same regular monthly payment even though the interest rate was lower. So in effect I think I overpay by about 15% now.

Probably not an option for you but I found they didn't apply the rules very strictly with me.
 
RedOnion said:
No, they don't. They allow 10% of the regular monthly repayment amount, not the outstanding balance.
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Oh. Okay. Thanks .

So, I suppose my plan would be to hold on to my existing terms, and continue to overpay until I reach the 10% of initial balance. I'm pretty sure that's an explicit provision in my agreement with KBC so I think I'd be on reasonable grounds there.

At that point I'll chance my arm and see if they'll allow me overpay by 10% of the monthly payments. Fat chance I'd say.
 
Or just overpay, and pay a break fee on the amount you overpay by if one applies. You'll still save money.
 
RedOnion said:
Or just overpay, and pay a break fee on the amount you overpay by if one applies. You'll still save money.
Click to expand...
Thanks to your posts (I think it was you) on the breaking thread I've taught myself how to calculate my break fee regularly, and it's horrendous at the moment.

I will also chance my arm and check whether BOI use a different cost of funds when calculating their fee when the time comes though.
 
Can anyone confirm if the revaluation fee is 80 euros. I’m currently evaluating options with KBC where im 8 months into a 2 year fixed @ 2.25%. Im considering refixing for 3 more years for 65euro break fee. Im also considering reducing the term. Is it best to reduce term or make overpayment. I understand i can stop overpaying at any time.
 
When I did something similar, I did not have to have a revaluation. I was still on the same LTV category so they said it was not needed. I think it is better to overpay than reduce the term. The term will reduce anyway if you overpay. There is more flexibility that way.
 
Hiya , I am at end of a fixed rate with KBC. I Can't switch lender due to income level. Here are the KBC rates on offer. How long should I fix for?

2 years <=60% LTV 2.25%
3 years <=60% LTV 2.25%
5 years <=60% LTV 2.40%
10 years <=60% LTV 2.85%

Thank you for any advice.
 
If you can't switch now, will you be able to switch at some time in the future?
How many years are left on your mortgage?

Brendan
 
Brendan Burgess said:
If you can't switch now, will you be able to switch at some time in the future?
How many years are left on your mortgage?

Brendan
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Hiya, Currently single income family. 2 Adults 3 children. I Tried switching before but failed. I have 20 Years left to pay on Mortgage.
 
It's hard to know what is best.

But it looks as if the 5 year fix is a good balance between security of rate and having a lowish rate. 2.85% is just too high.

Brendan
 
You don't have to pick just one you can spread your mortgage across all or some of the options.

It depends on how aggressive you can pay down the mortgage. With family expenses it probably means you're limited in the short term so you might be better off putting the bulk of your mortgage in the five year fixed category. That's not to say you shouldn't put something into the shorter fixed rates.
 
Thank you for all this useful information.
We have 15 yrs left to clear KBC mortgage, fixed term is due up soon with 374K left, <60% @ 3.05%. Feeling overwhelmed at times thinking about it!
What are our best options? Avant for 5 yrs or ?
We won't need breaking fees as our fixed term is up soon.
 
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