UB & KBC mortgage buyers must honour rates. What about Ts&Cs?

This has been approved by the The Competition and Consumer Protection Commission (CCPC). They are trying to get the same guarantee for Ulster BANK customers with IPTSB
 
steely1 said:
I Have read that as part of the Deal with KBC and BOI , BOI have to offer the rates that KBC would have offered when fixed terms end so In 3/5/10 years you would not be at a disadvantage
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@steely1 points out that the above claim comes from a Bonkers.ie article (emphasis mine):
If you're on a fixed rate, when you come to the end of your fixed rate, Bank of Ireland has agreed to offer former KBC customers the same interest-rate options as KBC would have offered, for the first time you re-fix. This is good news as KBC's rates for its existing customers are much lower than Bank of Ireland's. The CCPC might request the same type of agreement for Ulster Bank customers.
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But that appears to me to be a terrible misunderstanding of what the CCPC actually said. From the CCPC decision, as quoted in another thread (emphasis mine):
In response to these concerns, Bank of Ireland committed to the following remedies:
[...]
6. offering the variable rate equivalent to that of KBC migrated variable rate customers, as well as BOI fixed rate options, to fixed rate KBC mortgage customers on their first roll-over post-migration.
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So it seems that there is nothing in the CCPC decision that entitles a KBC customer to good fixed rates when their fixed-rate period expires.
 
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From Bonkers.ie

If you're on a fixed rate, when you come to the end of your fixed rate,
Bank of Ireland has agreed to offer former KBC customers the same interest-rate options as KBC would have offered, for the first time you re-fix.
This is good news as KBC's rates for its existing customers are much lower than Bank of Ireland's.
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this is what the document actually said.

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I have no idea what it means but it seems to me to be the following:

1) On the first roll over
2) They must offer the BoI Fixed rate options

I don't agree with the Bonkers interpretation, but I don't blame them for getting it wrong. And they may be right.

If you are a KBC fixed rate customer, take a screenshot of the bonkers wording and the current KBC rates and see how you get on.

But it would be much safer to just switch to a decent lender.

Brendan



 
@steely1 If you look at this post you will see that, at the end of their fixed-rate period, a KBC fixed-rate customer who decides to stay (or has to stay) with BOI will have only two choices, both of which are really poor:
  • Roll off onto KBC's variable rate
  • Switch to a Bank of Ireland fixed rate (not a KBC fixed rate)
    • And they can't choose a low BOI fixed rate, because those are only available to new customers. They can only choose the BOI rates that are available to existing customers.
Switching to another lender, or re-fixing with KBC now for a relatively long period, is probably a better choice.
 
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@steely1 @Brendan Burgess Bonkers.ie have now corrected their article after I pointed out the error. (Bonkers confirmed with BOI that it was indeed an error.)

Previously, it said:
If you're on a fixed rate, when you come to the end of your fixed rate, Bank of Ireland has agreed to offer former KBC customers the same interest-rate options as KBC would have offered, for the first time you re-fix. This is good news as KBC's rates for its existing customers are much lower than Bank of Ireland's. The CCPC might request the same type of agreement for Ulster Bank customers.
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Now it says:
Your current interest rate and terms and conditions will remain the same.

However fixed-rate customers of KBC will also potentially be faced with higher rates when they come to the end of their fixed-rate period. This is because if you want to fix again, you'll have to choose one of BOI's fixed-rates for existing customers, which are higher than the rates KBC offered its existing customers.
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So KBC mortgage customers need to give serious consideration to switching to another lender, or to re-fixing with KBC now for a relatively long period.
 
Permanent TSB's "welcome booklet" for people whose mortgage was transferred from Ulster Bank to PTSB says the following:
As a Permanent TSB customer you will still be able to avail of your 10% overpayment, previously offered by Ulster Bank. Please contact our Mortgage Operations Department to discuss this option as there are a variety of ways to make a lump sum lodgement.
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@myate Ulster Bank's website says:
Can I make overpayments (including 10% overpayments on my fixed rate mortgage) with Permanent TSB?

Yes, If you have a regular flexible repayment option on your Mortgage Loan with Ulster Bank, such as a payment holiday or an overpayment, these have transferred with your Mortgage Loan. Permanent TSB also offer a range of flexible repayment options to customers, including a 10% overpayment feature for customers on a fixed rate[...]

If you are making regular overpayments or once-off/lump-sum overpayments and using a direct debit to pay this, you don’t need to take further action[...]
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And:
If you have a regular / recurring overpayment in place, this will continue after the transfer completes.
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I guess that specific feature might not be offered by PTSB to UB customers who hadn't set it up before the migration, but PTSB have their own overpayment options:
  • You can overpay by as much as you like each month without penalty, and this builds up as a credit on your account
  • You can use this credit to take a payment holiday or to reduce the monthly repayments (or to pay off part of the principal at the end of the fixed period)
  • You are only charged mortgage interest on the net balance, i.e., on the mortgage balance after the credit has been subtracted
  • See this thread for more details
 
Hi - my mortgage is transferring to Bank of Ireland shortly from KBC so I am looking over everything in advance of that move.
I had a valuation completed on my home in June 2020 to take advantage of KBC new business interest rates. When I look at my mortgage repayment now and compare against various online calculators I appear to be on a higher rate. When I got approved over to new business rates does that mean I now always get the newest businesss variable rate or just the new rate as it was at that time, and I need to do a further valuation to get on the latest new business rate?
Thanks
 
quizzical said:
When I got approved over to new business rates does that mean I now always get the newest businesss variable rate or just the new rate as it was at that time, and I need to do a further valuation to get on the latest new business rate?
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You are eligible for all of KBC's rates listed here that correspond to your loan-to-value (LTV) bracket.

Our Mortgage Rates - KBC

www.kbc.ie www.kbc.ie

You should give serious consideration to choosing a fixed rate. Look at the section "Fixed rate – 0.2% Current Account Discount", assuming you have a KBC current account.

You probably know this but LTV means "loan-to-value ratio". For example, if your mortgage balance is €300k and your property is worth €400k, your LTV is 300k/400k = 75%. And where you see, e.g., "<60%", that means a loan-to-value ratio of less than 60%.

It is worth your while getting a updated valuation if you think that doing so will move you into a lower LTV bracket.

Consider posting your mortgage details in the switcher thread (in the format shown in the first post). I'll estimate the savings you would make from switching to different KBC rates (or to another lender if you want to go that route).
 
@Paul F "If you have a regular / recurring overpayment in place, this will continue after the transfer completes."
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Can confirm that Regular Overpayment has dropped off my UB Mortage when it transferred to PTSB.

May be very early in the process or an oversight - But PTSB said this morning that they would have to set it up again - And are in the process of doing it.

There was no Question of amount of % of overpayment - My monthly overpay was approx. 16% with UB.

I will know on the 28th when the amount comes out. Or if they confirm in writing by post. Possibly in Open24 but will only be registering for that today.
 
TTandTO said:
On [KBC] fixed rates, you should be able to pay off lump overpayment up to the value of 10% of the principle without penalty?
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Just to note that BoI will end this.
 
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(Was interrupted when writing above) .... , it's on page 13 of the BOI mortgage guide given to KBC mortgage customers. "BOI are ending the KBC feature that allows KBC customers (who have a KBC Mortgage offer letter that includes the feature) to repay up to 10% on a fixed rate without paying a breakout fee"..

but then on page 14 they write
"What does this mean for me as a fixed rate customer?
This means that if your mortgage loan transfers to BOI on a fixed rate, you will still be able to overpay by up to 10% of your loan balance until the end of the fixed rate".....

Best to refer to the booklet to be sure..
 
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Paul F said:
Here is the booklet that @Reick is quoting:
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thanks Paul, I didn't know booklet was available online..

PS - any idea where to get real numbers for the two variables below for the break fee formula on the booklet page13?

“R” = the annual percentage interest rate which was the cost to us of funding an amount equal to “A” for the originally intended fixed rate period. “R1%” = the annual percentage interest rate available to us for a deposit of amount equal to “A” for a period equal to “D”
 
Thanks @Reick & @Paul F

If I've read that correctly, they are honouring the 10% for the remaining of the term fixed with KBC, but will apply 'BOI' terms for any rates fixed after the transfer?
 
RedOnion said:
If I've read that correctly, they are honouring the 10% for the remaining of the term fixed with KBC, but will apply 'BOI' terms for any rates fixed after the transfer?
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That's how I understand it too.

Reick said:
PS - any idea where to get real numbers for the two variables below for the break fee formula on the booklet page13?

“R” = the annual percentage interest rate which was the cost to us of funding an amount equal to “A” for the originally intended fixed rate period. “R1%” = the annual percentage interest rate available to us for a deposit of amount equal to “A” for a period equal to “D”
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You could ask them but they might not give them to you – even though the law seems to say that they must.

Like a lot of people here I use swap rates as a proxy – see this old post for more info.

But let's keep this thread on topic.
 
Having just been switched over from UB 5yr fixed rate mortgage 2.35% to PTSB I've just been advised by PTSB that the 10% overpayment limit no longer applies therefore I'm free to make unlimited overpayments with no penalties while on this fixed rate. Not sure if this was mentioned in any other posts here but I guess the way interest rates have gone lately they want these cheaper rates off the books.
 
Mixer2017 said:
Having just been switched over from UB 5yr fixed rate mortgage 2.35% to PTSB I've just been advised by PTSB that the 10% overpayment limit no longer applies therefore I'm free to make unlimited overpayments with no penalties while on this fixed rate. Not sure if this was mentioned in any other posts here but I guess the way interest rates have gone lately they want these cheaper rates off the books.
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Are you sure that the PTSB staff member was not simply referring to the standard way in which they treat overpayments?

Key Post - The policies of the different banks on overpaying a fixed-rate mortgage

Updated by @Paul F Feb 2023 From Key Post https://www.askaboutmoney.com/threads/understanding-fixed-rates-breakage-costs.204427/ Can I overpay without a penalty? A question that pops up in a few threads discussing fixed rate mortgages is whether or not you can overpay during the fixed rate...
www.askaboutmoney.com
 
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