Switching from AIB to KBC Mortgage?

tommythecat

Hi,

Mods please delete my thread in banking as I think this is a better forum for this query.

I am looking for advice on whether it is a good idea to switch my mortgage from AIB to KBC. I know very little about KBC and i guess that is my worry. Are they a good bank? etc

I recently switched to the LTV <80% with AIB which is now 3.3%. I could have done this a while ago but just never got around to it. We are on year 8 of 30 of the mortgage. Remaining mortgage around 290k. We overpay when we can in bits and bobs which works well.

Looking at the KBC offerings I can avail of their >50<60% interest rate of 3.25% (Due to the massive jump in house prices. I have sold prices in my estate to prove the figures) and If i open a current account and pay my salary into it and pay the mortgage from that, gain an extra .2%. So that leaves it at a rate of 3.05%. So as you can see it's substantially better than the 3.3% from AIB. Also AIB do not have another LTV rate until you reach <50%.

KBC are also offering 3k towards legal fees so that would probably cover pretty much everything so I wouldn't incur any costs as far as I am aware?

Basically I am wondering if anyone has any experience with this and if you think it is a good idea. It seems like too good an offer to step away from easily.
Obviously I am aware that interest rates will most likely rise but i guess they will all rise in tandem so KBCs may well remain the lowest rate for the foreseeable.

Any advice would be greatly appreciated.

C3PO

We've been with KBC for approx 10 years now and have found them really good to deal with. During the worst of the recession we had a few tough years and they were very understanding about switching onto "interest only" for a period. They also made no effort to get us to switch away from out Tracker which other banks were doing at the time.
KBC are also a much bigger bank than either AIB or Bank of Ireland so you need to have no worry about their financial stability.

mickoneill31

You'll have to get a valuation to prove the figures.

Ulster bank have a rate of 3% that you'ld be applicable for. It's a little bit less than the KBC rate but thats €1450 on €290K. They only give €1500 for legal fees though so do the sums to see if the .5% discount is worth it. Similar to KBC they require you to open a current account. Fees are €4 per quarter.

I switched from KBC to Ulster Bank last year. When I switched KBC would not think of reducing my rate to the rate that new customers were getting. Since I switched to Ulster Bank I've had two reductions. KBC are meant to be better now though so it's up to you.

But absolutely switch. It's easy. It's time consuming as the banks and solicitors are slow but the work that you actually have to do to switch is only about half a day of your time. My legal fees and valuation cost about €1000 altogether. The valuation was free.

rsynnott

tommythecat wrote: »

I recently switched to the LTV <80% with AIB which is now 3.3%. I could have done this a while ago but just never got around to it. We are on year 8 of 30 of the mortgage. Remaining mortgage around 290k. We overpay when we can in bits and bobs which works well.

A bit off-topic, but can I ask how did you do this? Just ring up and ask, and get a new valuation? I've been overpaying enough to be under 80%, but I'd read that AIB didn't allow switching bands, so haven't really persued it.

tommythecat

rsynnott wrote: »

A bit off-topic, but can I ask how did you do this? Just ring up and ask, and get a new valuation? I've been overpaying enough to be under 80%, but I'd read that AIB didn't allow switching bands, so haven't really persued it.

Exactly. They allow you to only switch once though so I'd be unable to switch to the <50% when the time came. So you just need to be aware of that. You need to get a valuation from one of their approved valuers. That cost be around €150. Then just write a letter to say you'd like to switch. It was very easy.

tommythecat

mickoneill31 wrote: »

You'll have to get a valuation to prove the figures.

Ulster bank have a rate of 3% that you'ld be applicable for. It's a little bit less than the KBC rate but thats €1450 on €290K. They only give €1500 for legal fees though so do the sums to see if the .5% discount is worth it. Similar to KBC they require you to open a current account. Fees are €4 per quarter.

I switched from KBC to Ulster Bank last year. When I switched KBC would not think of reducing my rate to the rate that new customers were getting. Since I switched to Ulster Bank I've had two reductions. KBC are meant to be better now though so it's up to you.

But absolutely switch. It's easy. It's time consuming as the banks and solicitors are slow but the work that you actually have to do to switch is only about half a day of your time. My legal fees and valuation cost about €1000 altogether. The valuation was free.

Thanks for that info. I will certainly look at Ulster bank also.