BOI Mortgage interest rate for KBC customer.

brazilaa · 21-01-2024 09:12PM #1

I got my mortgage with KBC back in 2019 and started off with a fixed rate for 5 years at 2.80%.

I just received a letter from BOI stating my fixed term is up in March 2024 and they provided me with a list of available rates to choose from. The letter states that because I had a discounted rate of 0.2% with KBC, I will continue to enjoy that discounted rate and it is incorporated into each of the options below.

.>80% LTV Variable @ 3.55%

1 Year Fixed @3.95%

2 Year Fixed @3.95%

3 Year Fixed @4.05%

5 Year Fixed @4.05%

10 Year Fixed @4.55%

The variable rate at 3.55% seems low for BOI even with a discount of 0.2%. When looking at their rates online it looks like their variable rate is currently 4.75%.

I feel like if I choose the variable rate at 3.55%, it wont be long until they change my rate to the higher variable rate of 4.75% that I see online.

Looking for advice here, what do you lot think?

Thanks

cython · 25-01-2024 08:23AM

As part of the terms of acquiring the KBC business, BOI are also obliged to offer a one time variable rate to ex-KBC customers rolling off fixed rates for the first time, and this rate is linked to what KBC would have offered based on their SVRs at the time of the acquisition.

The only way BOI can raise this variable rate is by raising their "main" one by the same amount, as they are required to maintain the distinction between this rate and their own. They've done this one since rates started to climb, as far as I know.

If you do not avail of/if you surrender this rate in March, you will not have it as an option again (you'll be a full fledged BOI customer then), so you do need to give it sufficient consideration. Given that it's better than the other options I would find it hard to look past myself, especially with the flexibility variable affords for overpayment.

JVince · 02-02-2024 12:41AM

I'd jump at that variable rate offer.

Remember you can move to a fixed rate at any point and with ECB next moves downwards, fixed rates will move down too.

There is no downside to taking the variable rate they are offering

L1011 · 02-02-2024 12:48AM

BOI are being exceptionally compliant to the CCPC ruling on taking on KBC loans and are offering market beating rates on expiry/rollover of deals.

Jump at - as said above, there is no downside; once on a variable you can move at any time anywhere without exit fees.

fido_dido · 15-01-2025 04:22PM

Has anybody come off their fixed rates recently? What are the new rates that BOI is offering for KBC customers?

cython · 17-01-2025 10:08AM

I'd expect that the fixed rates on offer to ex-KBC customers will be the same as those available to mainstream current BOI customers. It's only the SVR for customers rolling off a legacy KBC fixed rate (for the first and only time) that BOI are obliged to handle as the special case outlined above.

As to what that SVR looks like today, I'm not sure, and since BOI rejigged their rate structure markedly last year it's hard to map between the two any more. Ask me in 2027 and I might have a better idea as I'll be rolling off my KBC fixed rate then.

stayback · 17-01-2025 10:15AM

I have just come off a fixed rate with KBC (now a BOI mortgage). I had a BER rating of C and got a 5yr fixed for 3.5%.

Good Value I think in the current climate

Daith · 18-01-2025 03:17PM

https://www.boards.ie/discussion/comment/123065287#Comment_123065287

Can I check if during your renewal you told them about the BER? I.e. did they offer a different rate first?

I did some improvements to the house and brought it up to a B3 from a D, so wondering if that might help

cython · 18-01-2025 08:46PM

https://www.boards.ie/discussion/comment/123069567#Comment_123069567

The rate the poster quoted seems to align with the published rate for a C BER and fixing for 5 years, so it seems likely. For you with a B BER, then you should be able to expect a 5 year fixed rate of 3.45%.

https://personalbanking.bankofireland.com/borrow/mortgages/switcher-mortgage/#interestrates has a filtered table that should be of some use to estimate your options.

stayback · 20-01-2025 10:11AM

https://www.boards.ie/discussion/comment/123069567#Comment_123069567

when you ask for the fixed rate options it gives you the option to enter your BER number, the higher the BER the more the disocunt.

Daith · 20-01-2025 11:33AM

https://www.boards.ie/discussion/comment/123075588#Comment_123075588

Cheers, thanks!

in2dark · 24-01-2025 12:08PM

The special variable rate is 3.25 now

Daith · 24-01-2025 01:05PM

https://www.boards.ie/discussion/comment/123094282#Comment_123094282

Sorry, is that rate just a once off for KBC customers?

fido_dido · 24-01-2025 04:38PM

https://www.boards.ie/discussion/comment/123094282#Comment_123094282

Is this rate irrespective of LTV?

in2dark · 25-01-2025 10:18AM

https://www.boards.ie/discussion/comment/123094547#Comment_123094547

Yes it is. And it goes and up or down every time boi changes their normal variable rate.

It is significantly lower than their normal variable rate.

I dont know if it affected by the LTV.

Finally you are offered this special variable only once. When you roll off your fixed rate you had with kbc. You can stay on it for as long as you like but if at any stage you chose any fixed rate of boi then you lose your right to go back to it.

Hope this helped

Daith · 25-01-2025 10:30AM

https://www.boards.ie/discussion/comment/123097289#Comment_123097289

Yes absolutely. Sorry I didn't realize it was a variable rate and was wondering if BOI were offering a one off special fixed rate for KBC rolling off.

That helped a lot. Thanks again

BOI Mortgage interest rate for KBC customer.

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