Dublin mortgage company

rooney30

Got a letter through the post today from this company offering a saving of 205 euro per month on a mortgage of 300,000 over 30 years., if you switch your mortgage with them
I think they deal with kbc offering an interest rate of 3.7 % as opposed to the variable of about 4.5 with which most boi and Aib customers are on.
Anyway my question is, what is the catch if you change?
The ad claims that there are no transaction fees whatsoever , it sounds too good to be true!

tenifan

You might have a few fees, like to get the deeds back from your current bank, or the cost of a valuation for the new bank.
If you're on a fixed rate there can be a large fee from your existing bank to move away from them.
No guarantee KBC won't hike their variable rate a few years down the line.

Is your LTV less than 60%?
See http://www.kbc.ie/personal/mortgage/mortgageinterestrate
LTV Variable <60% 3.71% apr
LTV Variable >60<80% 3.86% apr
LTV Variable >80% and up to 90% 4.35% apr

Also, those rates seem to be for the KBC Current Account Discount Mortgage Offer. If you don't want to change your current account your salary is paid in to to KBC, you'll pay an extra 0.2% on those rates.

So in the case of a 90% loan without the current account discount, you're looking at 4.55% APR for a variable rate.

Trish56

If your loan to value is 60% or below it is very good value if you are paying 4.50% or over at present. If you draw down the mortgage before 31st December KBC will pay you 1k towards legal fees. For a remortgage this should more or less cover the legal fee but check with your Solicitor first and make sure the quote includes outlay and VAT Only other cost would be valuation fee approx. €135.

As Tenifan says when you are on a variable rate the lender can increase the rate at any stage so there may be a possibility in the future that KBC increases the interest rate.
You also need to qualify for a 300k mortgage with KBC although I presume your existing broker has checked your income and will also depend on a perfect repayment record with your existing lender.

rooney30

Thanks for the replies. Kbc will pay 1500 towards legal fees , iv been led to believe that most solicitors will do it for this. The valuation fee is also paid ( either by the broker or kbc ) kbc will also pay the first years home insurance which is provided by Zurich .
Sounds like a decent deal, although I accept that the rate can be hiked if they wish

imfml

I got a first time buyers mortgage from PTSB last November, but am already considering switching, only because I have since got a pay rise and KBC will now consider me. I've been looking at KBC as I calculate I would save approx E160 a month.

I must check if PTSB have a fee for changing my variable rate mortgage from them, does anyone know?

Who are Dublin Mortgage Company though, and what is the advantage of using them instead of dealing with KBC directly?

With the savings to be had it's a no brainer, but switching mortgage seems daunting.