https://www.irishtimes.com/business/financial-services/kbc-seeks-to-quit-republic-with-planned-loan-sales-to-bank-of-ireland-1.4539135 KBC Group has signalled it is seeking to quit the Republic after more than four decades. It is planning to sell its performing loans and deposits to Bank of Ireland, reducing the number of retail banks in the country to three.
Final call for submissions to the CCPC that the loss of KBC will lead to a reduction in market competition:
https://www.ccpc.ie/business/ccpc-to-carry-out-a-phase-2-investigation-of-bank-of-irelands-proposed-acquisition-of-certain-assets-and-liabilities-of-kbc/
Sale confirmed!
I've been kind of ignoring this for a while and waiting until I had to take action.
My 3 year fixed term mortgage is up for renewal in January and I was looking at the rates for another 3 year. KBC would be 2.45% (actually 2.25% with discount for having a KBC Current Account).
Exact same mortgage with BoI would be 3%.
Once everything is finalised, and people allow their KBC mortgages to switch over to BOI mortgages you could end up paying a few hundred extra each month.
I wonder how many people will today withdraw funds from KBC to avoid going over to BOI.
Won't be doing anything today.
Would hope that this might allow me to break my fixed rate with KBC and move over to Avant or FI.
The mortgage is being transferred, the agreement is not being broken....
I'll not be doing anything, until I get correspondence from KBC/BOI with a date that my mortgage/current account/savings account are officially transferred to BOI. Then I will switch, want nothing to do with those wasters at BOI while ensuring I can benefit from my current arrangement with KBC for as long as possible
Trouble is the competitors are getting smaller & smaller so choices are getting more limited :(
Yeah, I figured as much. Interested if my current a/c discount will be retained.
Have you asked KBC for the cost to break your mortgage? We're thinking of selling & have ~ 15 months left on our fixed rate. I don't have the letter with me now but think it was only ~ 300 to break. Might be worth looking into switching anyway & see what it'll cost you.
ICS mortgages also have the same rate as Avant but you can over pay more before they charge you.
I presume any rate with KBC would be maintained by BOI until the fixed term was up. It would make more sense to re fix at a new term if the rate is much better than BOI.
There will be alot less competitors when UB are also gone so changing to anyone else now may not be great.....all you can do is look for the best rate at the time of renewal.
More info might be forthcoming over the the next few weeks.
Thanks, I would have thought it would have been much much more. I will give them a call next week and see what they say.
I love the idea of fixing for 15-20 years at 2.5% while retaining the ability to overpay.
After valuation and solicitor fees I think it cost me close to 2k to switch last time, so maybe not worth it.
What is happening to current accounts, will they just be closed? Everything I have seen has just been about the sale of loans.
I also assume the rate will stay the same for the fixed term, but possibly without the 0.2% bonus. Without that, there are other mortgages that compare to KBC - Avant, ICS, Haven.
I will probably go for a 3 year fixed term with KBC and hope BoI honour the 0.2%. After 3 years I'll see what else is available
That is the plan.
Might switch mortgage and current account to AIB. We have a joint account and if you have your mortgage with them, your current account is fee free.
Will also move credit card over but haven't paid fees on that in years so nothing in it for the banks 😁
Yeah I would second this. If you have a mortgage, AIB has some great rates and mortgage account holders can also use a free current account with no fee whatsoever.
I already have a mortgage with AIB so I'll just transfer my KBC account to AIB when the day comes.
UB current accounts are being closed so I'd say the same for KBC - We'll know more over the coming week but this will take time & won't be done over night. At the same time people need to have it in there head it's happening and to do what's best for them in the longer run.
Due to move off kbc fixed rate of 2.25 in January and was going to sign a new 2 year fixed rate at 2.25 again now.
Now thinking I might switch current account and mortgage to AIB 5 year green rate of 2.15 and have free current account for myself and wife (she has current account with aib already). AIB also give 2k switcher fee to pay for legal fees also by looks of it.
Worried those BOI gougers won’t honour the 0.2 current account discount when they take it over plus have to pay current account fees and will be left with a 2.45 when could have gone to AIB to 2.15 and have free current accounts.
I moved to KBC from BOI three years ago due to their high rates!
Looking at their current rates, I’m shocked anyone stays with them once they get their 3% cashback and finishes term! Extremely uncompetitive rates.
Most likely, which means overdrafts are payable on demand.
Will credit cards be transferred over to BOI too does anyone know?
I'm gonna miss KBC and their 1% cashback for using their credit card!
That's a pain, I quite like their app, it would break my heart to go back to BOI's app.
I seen some people draw similarities between the UB sale and KBC. There are important differences. Only UB assets are being sold if you look at the agreement between BOI/KBC you'll see that it includes a transfer of €4.4 billion of liabilities.
Based on their 2020 accounts, the sum total of their customer deposits was close to €5 billion.
Often people forget solicitors fees. Huge chunk of dough.
I've both KBC and BOI apps currently. Tbh not seeing much of a different experience overall...
There's a lot of talk about current accounts, Credit card accounts, over drafts , personal loans with with KBC and the BOI deal.
My understanding is the following any thoughts , corrections welcome.
Only perfoming Mortgages being purchased /Taken over by BOI, performing loans also (but not clear what type of loans) . Non performing loans, mortgages sale already commenced to vulture funds.
Current Accounts:
Historically when , Dankse, NIB, previous An Post Bank closed, Current accounts did not transfer and won't in any arrangement with BOI or anyone other Bank for that matter. Customers will have to set up new current accounts with whomever they choose.
Overdraft:
Overdrafts with KBC will , I presume have to be paid/Cleared on demand (on closure or nearing closure) of KBC current accounts. I presume a customer opening new current account could negotiate an overdraft with new bank as part of moving account but that's a separate issue. I'm not sure those with overdrafts realise what's coming. 🤔
Credit Cards:
Not at all sure what will happen with credit cards, KBC will likely close them also but they certainly won't be transferring to a new bank 🤔
Personal Loans:
Personal Loans may have to continue to be serviced by KBC or an appointed intermediary or perhaps be sold on to a 3rd party , I presume terms and conditions carry forward, payable on demand not an option for KBC re performing personal loans.🤔
Again all the above IMO
Well, I suggest you visit Important Information - Consumer Finance - KBC which gives you the correct information for Loans, Overdrafts and Credit Cards.
Both Loans and Credit Cards are part of the deal to be sold to BOI.
And as to current account, indeed you will need to switch yourself as per Important Information - Current Accounts - KBC
Thank you, I wasn't fully sure about personal loans or credit cards aspect but it would make sense they transfer.
Thankfully I don't have anything other than a current account with no O/D to worry about, have already set up new account elsewhere but will maintain KBC account for as long as possible, direct debits etc.
Apologies if this has already been answered but I’m wondering where I stand with regards to my mortgage. It is fixed with several years left and my understanding is that it will just move to BOI with the current T & Cs intact. What are my rights if I don’t want this to happen? Suppose I want to remortgage as I don’t want my mortgage to be with BOI, can this be facilitated? (Without paying a break fee)
Your mortgage will remain the same including your fixed term. There will be break fees. The cost is the same you signed up happy with those terms with KBC what specifically is the problem with the move ? You can feel free to look at the market when the fixed terms up.
