KBC cutting rates to lowest 1/3/5 year fixed

M.Cribben

https://www.independent.ie/business/personal-finance/property-mortgages/kbc-bank-ups-the-ante-in-mortgage-market-war-with-cuts-in-fixed-rates-37126924.html


All this competition is great news for customers, hopefully if the trend continues we will eventually be more aligned with other EU countries (1 - 2% rates).

ted1

Be careful with short term fixed rates as the variable rate is quite high once the fixed term is up.

While you may plan on moving mortgages at the stage you may find it hard. If you have a child or two during the fixed rate you may find that no bank will lend you what you currently have as they deduct money for kids

myshirt

Good for incumbents, but will push up house prices for new buyers.

Mongfinder General

Just a shame that 5 years is the longest term available

Captain Flaps

Mongfinder General wrote: »

Just a shame that 5 years is the longest term available

It's not, we just got a mortgage with KBC, we had the option to fix for 10. The rates were pretty low iirc so maybe they're just not changing those?

techdiver

Mongfinder General wrote: »

Just a shame that 5 years is the longest term available

Captain Flaps wrote: »

It's not, we just got a mortgage with KBC, we had the option to fix for 10. The rates were pretty low iirc so maybe they're just not changing those?

Yeah, I'm on a split with half the loan fixed for 10 years @ 2.99% and the other half variable @ 3.1%.

sunnyday1234

ted1 wrote: »

Be careful with short term fixed rates as the variable rate is quite high once the fixed term is up.

While you may plan on moving mortgages at the stage you may find it hard. If you have a child or two during the fixed rate you may find that no bank will lend you what you currently have as they deduct money for kids

What is the variable you would end up afterwards, what rate ?

ted1

3.57%

sunnyday1234

ted1 wrote: »

3.57%

Thanks
 I suppose the only thing is that if you fix for 5 years then once you come off the fixed you can switch again (assuming the market hasnt crashed and your LTV has decreased)
Got a letter from AIB a few months back asking was i interested in changing rates , must be because they knew these cuts were coming and will be cutting themselves soon...
When the bank sound like they are helping, there is  always a catch :-)

derekbro

ted1 wrote: »

3.57%

Can i ask where you're getting that rate from? I'm on a fixed with KBC at the moment ending next month and will wait until september to go onto the new fixed rates so will be on variable in between and their current variable rates are 3.05% with current Acc discount for 60-80% ltv

ted1

You could be going into 4.05%

https://www.kbc.ie/our-products/mortgages/existing-customers/pdh-offer/fixed-rates

New customer will go on to lower rates

https://www.kbc.ie/our-products/mortgages/our-mortgage-rates

Remember it’s the higher rate you get the APRC you pay.

ted1

sunnyday1234 wrote: »

ted1 wrote: »

3.57%

Thanks
 I suppose the only thing is that if you fix for 5 years then once you come off the fixed you can switch again (assuming the market hasnt crashed and your LTV has decreased)
Got a letter from AIB a few months back asking was i interested in changing rates , must be because they knew these cuts were coming and will be cutting themselves soon...
When the bank sound like they are helping, there is  always a catch :-)

If you have a kid you may not be able to switch as they’ll reduce the mortgage you have

Claw Hammer

Beware of Greeks bearing gifts!

snowstreams

ted1 wrote: »

If you have a kid you may not be able to switch as they’ll reduce the mortgage you have

But surely if your LTV has dropped a good bit in the intervening few years then the reduction for a new child shouldn't be a big issue?
Of course this all assumes no market crash in the meantime either.

I know we have had 2 children since we applied for our mortgage but my LTV has dropped a good bit due to price rises etc.

ted1

snowstreams wrote: »

ted1 wrote: »

If you have a kid you may not be able to switch as they’ll reduce the mortgage you have

But surely if your LTV has dropped a good bit in the intervening few years then the reduction for a new child shouldn't be a big issue?
Of course this all assumes no market crash in the meantime either.

I know we have had 2 children since we applied for our mortgage but my LTV has dropped a good bit due to price rises etc.

Nope the LTV is wholly irrelevant, it’s your ability to pay.

When they stress test you they wil take 500 per month off for your 2 kids. So you’ll need a 12k pay rise to get your current mortgage

derekbro

ted1 wrote: »

Nope the LTV is wholly irrelevant, it’s your ability to pay.

When they stress test you they wil take 500 per month off for your 2 kids. So you’ll need a 12k pay rise to get your current mortgage

It's not that black and white, that's assuming you took out the max mortgage you could at the time and have not had any pay rises in between.

ted1

derekbro wrote: »

ted1 wrote: »

Nope the LTV is wholly irrelevant, it’s your ability to pay.

When they stress test you they wil take 500 per month off for your 2 kids. So you’ll need a 12k pay rise to get your current mortgage

It's not that black and white, that's assuming you took out the max mortgage you could at the time and have not had any pay rises in between.

12k is what your pay rise would need to be to get the sane providing you borrowed the max you could.

utmbuilder

They all seem to be fighting over a small pool of vetted borrowers. The likes of pepper are cleaning up.

Specialun

we got approvals a while back..waiting to draw down and will be mid sep

would we qualify for these new rates so?

izzyflusky

Specialun wrote: »

we got approvals a while back..waiting to draw down and will be mid sep

would we qualify for these new rates so?

Yes, they go into effect on the 3rd of Sept.
I am due to draw down soon ish. Broker is sending out new loan offer with variable for the month of August anf then we are fixing in September. Otherwise we would miss out on the offer.

GaGa21

We were going with KBC through our broker but were told then that the house we had chosen was not suitable due to it's location. So just be aware and check up on this before thinking of switching etc.

theteal

2.3 is a good rate? Balls, must save more before moving home.

Our current 2 year fixed with Virgin UK is a smidge over 1.3

Captain Flaps

izzyflusky wrote: »

Yes, they go into effect on the 3rd of Sept.
I am due to draw down soon ish. Broker is sending out new loan offer with variable for the month of August anf then we are fixing in September. Otherwise we would miss out on the offer.

We just drew down fixed for 5 years 2 months ago. I am less than thrilled.

xalot

Captain Flaps wrote: »

We just drew down fixed for 5 years 2 months ago. I am less than thrilled.

I contacted them directly and you can break your contract and avail of the lower contract. Give them a call to see what the penalty to break is for your contract. It might be worth it in the long run for you.

JoeyJJ

Wonder will BOI react, coming off a fixed term in August. Not sure I fancy switch hassle and costs be nice if they moved to compete.