My understanding is that the 0.2% current account discount is an arrangement only introduced from 2014 when they were trying to entice current account customers in. Its not part of you mortgage terms and conditions and i do not believe there is any contractual entitlement to it.
The rate of interest specified in the Particulars of Advance is the current account mortgage rate for that particular category of LTV
Loan as specified in No 18 of the Additional Particulars of Advance (the "Current Account Mortgage Rate").AvailabilityThe
availability of the Current Account Mortgage Rate is conditional on and subject to the Lender being satisfied that the following
conditions have been complied with and the documents referred to herein are received in a form and content satisfactory to the Lender
in its absolute discretion:
(i) That the purpose of the Loan is to finance the purchase of a residential property which is to be used as the
principal private residence of the Borrower.(ii) That prior to the drawdown of the Loan, the Borrower has opened a
current account with the Lender (the "Current Account"); (iii)
(a) If the Borrower is employed, that the Borrower's salary has been mandated to the Current Account and a
satisfactory completed and signed salary transfer form has been received by the Lender prior to the drawdown of
the Loan, or
(b) If the Borrower is self employed, that the Borrower establishes a monthly transfer to the Current Account to
lodge an amount that is at least equal to the monthly mortgage repayment.
(iv) That the Borrower has provided a SEPA direct debit mandate prior to the drawdown of the Loan from the
Current Account in relation to the Loan.(v) That the Borrower has complied with all other special and general loan
conditions attaching to the Letter of Offer, and(v) That the Lender has received any other documentation or items
requested.
WithdrawalThe Lender reserves the right to withdraw the Current Account Mortgage Rate at any time prior to the drawdown of the
Loan. Where the Lender withdraws the Current Account Mortgage Rate prior to drawdown, the Lender's prevailing New Business Rate
for that category of Loan will apply.The Lender further reserves the right to withdraw the Current Account Mortgage Rate after the
occurrence of any of the following events on the provision of 30 days notice in accordance with the notice provisions of the General
Home Loan Conditions :
(i) on the closure of the Borrower's Current Account.(ii) if the Borrower ceases to mandate their salary to the
Current Account; or If the Borrower ceases to maintain the payment of a monthly amount to the Current Account
that is at least(iii) equal to the monthly mortgage repayment. If the Borrower cancels the direct debit drawn on the
Current Account; and(iv) if the Property ceases to be the principal private residence of the Borrower.
Where the Lender withdraws the Current Account Mortgage Rate after the drawdown of the Loan, the Lender's applicable rate for that
category of LTV loan for existing customers will thereafter apply.
Warning − If the Lender withdraws the Current Account
Mortgage Rate, the interest rate applicable to the Loan will be higher than the prevailing Current Account Mortgage Rate
which will result in an increase in your monthly repayments and an increase in the Annual Percentage Rate of Charge. We will
advise you at the time of the new monthly repayment and the Annual Percentage Rate of Charge.Changes to the Current
Account Mortgage Rate from time to time will be notified to the Borrower by the Lender on the provision of 30 days notice in
accordance with the notice provisions of the General Home Loan Conditions.For the avoidance of doubt, save as amended hereby, the
General Home Loan Conditions apply to this Loan.
So KBC closes your current account.The Lender further reserves the right to withdraw the Current Account Mortgage Rate after the
occurrence of any of the following events on the provision of 30 days notice ... :
(i) on the closure of the Borrower's Current Account.
Answer:"I have a discount on my KBC mortgage because I have a Current Account with KBC. What will happen to this discount if my mortgage is transferred to Bank of Ireland?"
There is no immediate impact on your KBC Mortgage discount as a result of this announcement. Should a Binding Agreement with Bank of Ireland receive regulatory approval, your KBC Mortgage will transfer to Bank of Ireland at a future date.
If your Mortgage transfers to Bank of Ireland, your Mortgage discount will continue to be honoured for as long as your Mortgage remains with Bank of Ireland. You will not be required to open a Bank of Ireland Current Account to avail of the discount. From the 1st June 2022, KBC will commence a process of engaging with customers regarding the closure of current accounts. As of that date, you will be able to close your KBC Current Account and your Mortgage Discount will be honoured by KBC Bank Ireland and by Bank of Ireland once your mortgage transfers.
In the meantime, you should continue to adhere to the KBC conditions associated with the discount i.e. continue to have your salary mandated to your KBC Current Account.
You will be notified well in advance of any actual steps or changes that may be taken in respect of your Mortgage.
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