What will happen KBC mortgages?

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We have our mortgage with kbc (originally IIB) for 16 years. We've since moved and have a split mortgage of which approx 70% is a tracker. Not keen on the idea of our mortgage being bought by a vulcher fund but am I correct in that we wouldn't be able to switch provider and retain tracker?
 
Your mortgage terms should stay the same as your contract once they’re sold on. You may be able to move your tracker at a cost but isnt worth doing e.g. additional 1-1.5% onto your rate
 
Bank of Ireland will apply their normal interest rates on the non-tracker bit.

Unfortunately, they are far higher than KBC's

But as Paschal says "Your rights are fully protected."

Brendan
 
Does that mean I need to hit KBC for a fixed rate now before something happens

LTV is about 35% so can get 3 years at 2.45% I assume BOI will have to keep that rate

Is it too late I have the facts and figures and was looking at putting a lump off the mortgage before fixing.
Just need to see how something works out in about a month to make a decision on the lump.
 
My KBC fixed rate expired this month, I requested a two year fixed for the lowest rate, but should I now change this to longer term? I will likely be unable to change mortgage provider when the 2 yr fixed expires and don't want to be stuck on BoI rates.
 
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?
 
Qwerty123 said:
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?
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Great question. Will this be Honoured by BoI?

I also wonder what happens with the break fee calculation? When the mortgages are transferred to BoI, would their breakage fee calculation be used. There are differences between how each back calculates their break fee and I also wonder if the R1 variable changes in the calculation.
 
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ihatebanks said:
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.
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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.
 
We currently have a tracker mortgage with KBC and we have made a number of large sum over-payments over the years, with the option to redraw at a later stage. Do you know what the implications of KBC exiting the market will be for our mortgage? Perhaps, we should redraw the over-payments now.
 
RedOnion said:
What differences are there, beyond your contractual right to repay 10% early without a break fee?
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The banks use difference sources for their "cost of funds at the beginning of the fixed rate period" part of the calculation.
 
Paulk said:
with the option to redraw at a later stage.
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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
 
Tickle said:
The banks use difference sources for their "cost of funds at the beginning of the fixed rate period" part of the calculation.
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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?
 
Brendan Burgess said:
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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Hi Brendan,

I redrew money over 5 years ago from the mortgage and there was not any issue. I'm checking the contract to see what is says and will update you.

Thanks
 
Now that everyone has taken a breath

What is the fallout ?
what does one do with a current KBC performing mortgage?
Do I try to fix for a few years and get a lower rate from KBC?
 
1. As above no further info.
2. Keep paying
3. KBC rates are better than BOI rates. You can lock in certainty now or wait and see what the future holds. No reason to presume BOI will offer lower rates in the future. Alternatively it may be more advantageous for you to look at switching to availing of cashback offers and/or lower rates
 
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