Great question. Will this be Honoured by BoI?I receive a 0.2% discount on my mortgage interest rate for having a KBC current account with a certain amount deposited each month. Will I lose this benefit if transferred to BOI?
Fixing guarantees the rate for the term of the fix. The new provider has to honour the fixed rate however there is nothing to say what rate you get after that point.Made lump sump payment to decrease capital. Will be requesting term reduction with increased payments. Going ahead with this despite the news. Even if BoI will bump our apr we will be able to afford it and will be paying this for 10 years less then original mortgage.
KBC didn't confirm if fixing now for 10years will guarantee rates once loans are moved to BOI.
What differences are there, beyond your contractual right to repay 10% early without a break fee?There are differences between how each back calculates their break fee
The banks use difference sources for their "cost of funds at the beginning of the fixed rate period" part of the calculation.What differences are there, beyond your contractual right to repay 10% early without a break fee?
with the option to redraw at a later stage.
The purpose of the break fee is so the bank is compensated for the cost of funding the fixed-rate period. What did it cost BoI to fund an existing KBC fixed-rate mortgage? Right now, the answer is nothing. How could it be determined in the future should BoI take over the mortgages?The banks use difference sources for their "cost of funds at the beginning of the fixed rate period" part of the calculation.
If you have a contractual right the redraw, you keep it.
Have you exercised this ever?
I know that they have denied it to some people who thought that they had a right to redraw.
Brendan
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