KBC exiting Ireland

AlmightyCushion

I am pretty sure a missed payment only goes on your credit report if it goes over 30 days. So, if it bounces for whatever reason as long as you make sure you pay it within 30 days of the original payment date it should not show up on your credit report.

rodge123

Anyone know what happens if I get an official offer with loan term/rate on it and rates go up a few weeks later? Is the offer rate stuck in stone for a certain period?

Have all the info submitted online for AIB 5 year green at 2.1 and waiting on office offer now.

macvin

https://www.boards.ie/discussion/comment/119156617#Comment_119156617

Rate is the rate that applies on the day unless stated otherwise.

In many cases a bank will give notice of new fixed rates. eg Avant said that all money drawn down by 1st week July can avail of the fixed rate before the raise in early May. But if there are any delays and you draw down mid July, the new rate would apply.

I'd be getting the solicitor to have everything ready to go.

raxy

I have AIP from Avant, had to send in a new statement before loan offer. The AIP has the higher rate but broker said if we draw down before the 15th July we'll get the lower rate.

Solicitor said the biggest delay in drawing down is getting the deeds from the old bank. They requested them a week ago now but no word yet.

bugsyb4

https://www.boards.ie/discussion/comment/119156617#Comment_119156617

In the same situation and what they told me until you drawdown rate is not guaranteed. My switch is not until 25th Aug so hoping no rate changes before then, could go either way!!

AndrewJRenko

https://www.boards.ie/discussion/comment/119143235#Comment_119143235

Most CUs have more cash than they know what to do with. They can’t get enough members to take out loans, so they don’t want more cash. It is costing them negative interest to keep your money on deposit with a bank.

Fwarder

Hey guys,

Like everyone else, I'm looking to "future-proof" myself for a while (I have less than a year with on fixed rate). My breakage fee is 0€, which is excellent.

I was looking at PTSB (4y, 2.05%) and Avant (4y, 1.95%) which seemed like the most obvious choice. Still, with solicitor fee, valuation etc. (+ all the hassle involved), I also thought about the possibility of extending my mortgage with KBC for three years @ 2.25%.

Does somebody know if something like that is possible: to extend your fixed rate while still under a fixed rate? I'm not sure how to formulate that correctly, but hopefully, you get it :)

With all this mess and the potential interest rate rise, I guess I definitely wouldn't like to wait until 2023 to think about the mortgage.

Wheety

https://www.boards.ie/discussion/comment/119195255#Comment_119195255

You can break out of your current fixed rate and fix again. KBC will stop taking applications for new mortgages from new and existing customers from mid July. I presume you can still fix after this.

I'm torn between switching to AIB at 2.1% for 5 years and have a free current account (and get €2k for switching) or go to Avant/Finance Ireland for 10 or 15 years at 2.4%.

Fwarder

https://www.boards.ie/discussion/comment/119195344#Comment_119195344

Yeah, it's tricky at the moment. I should have switched while Avant was offering cashback :)

Wheety

If I fix for 15 years at 2.4%, I reckon I could have it paid off in that time.

2.4% is a decent rate even at the bottom of the market. If rates are over 3%, which is probably quite likely then it would look like a brilliant choice. But AIB will be €4,400 cheaper over the 5 years including cashback.

macvin

https://www.boards.ie/discussion/comment/119195255#Comment_119195255

https://www.boards.ie/discussion/comment/119195344#Comment_119195344

@Fwarder AVOID PTSB at all costs. they do not offer current customers the same rates as new customers and their standard variable is amongst the highest in the market. Poor value overall.

If you are with KBC and have the current account discount, go for as long a period as you can. I'm guessing you are 60% ltv. 5 Year @ 2.4% is excellent and would be my choice. You simply break out of the current fixed and into a new 5 year fixed. Takes a day or two to complete and no fee

At the end of 5 years you will be with BOI, but will be able to switch out at that point if their rates are not competitive.

The other option is a long term fixed with Avant @ 2.4% for 10-15 years.

@Wheety If you can get things done in time and get the 2.4% from Avant, its probably the best option. I can't see 0% ecb rates ever returning. But also I don't see rates going past 2% (might go to 2.5% for a short period). The UK is already looking at stopping its rises.

But at 2.4% you are quids in no matter where rates go.

For both (and others) the current balance and year remaining on the term would allow me / others give a more accurate best option.

Wheety

@macvin we have 23 years left and €160k

Can refix with KBC for 5 years at 2.4% or 10 years at 2.85%

macvin

https://www.boards.ie/discussion/comment/119195519#Comment_119195519

about €35 monthly difference - circa €400 a year - between the two rates.

So @ 2.4 saving is €2,000 over next 5 year on the 5 year rate v 10 year.

But where will rate be then? - ECB says they want 2% inflation and neutral interest rates - so they are targeting 1.75%-2% interest rates. That would probably mean about 4% as best rate in 2027. You balance then would be about 137k. At 4% the repayment would be about €85 higher than the 10 year rate - circa 1000 a year, thus about €5000 cheaper that what the market would then give you (assuming 4% rate). Deduct the €2k 1st 5 years saving on the 5 year rate and you are better off be a net €3000.

So if like most commentators and what the ecb themselves are saying and interest rates will move to 1.75/2% in the medium/long term, the 10 year rate is the best option.

2.4 for 15 years with avant is 1059/month. I'd go for that if its affordable.

Fwarder

https://www.boards.ie/discussion/comment/119195501#Comment_119195501

For us it would be roughly 130k on LTV 40% with 17y remaining (C1 house if that makes any difference).

Sarn

We’ve decided to refix for 5 years at 2.4% (currently on 2.25%) with KBC. Just waiting on the break fee form (zero break fee). Also need to make sure we get the current account discount as it is not included on the existing customer rate offer application form.

At this stage it won’t be possible to switch to another lender and drawdown before rates increase in July. It could also be touch and go for September. I’m raging I didn’t switch to Avant when they were giving cashback earlier in the year.

Fwarder

https://www.boards.ie/discussion/comment/119196842#Comment_119196842

The same. I guess we'll remember that decision every time higher DD goes out for mortgage :D

youcancallmeal

https://www.boards.ie/discussion/comment/119196842#Comment_119196842

Yep doing the same at the moment, just need to submit your signed break document(before it expires), refix application and valuation report(optional). I'll be doing the same within the next week so hopefully on 2.4% for 5 years from August, have missed July window at this point I think

Fwarder

https://www.boards.ie/discussion/comment/119197465#Comment_119197465

What do we need for that? Just a breakage fee form in writing? (What would I need to ask for since I never did something like this :D )

youcancallmeal

https://www.boards.ie/discussion/comment/119197712#Comment_119197712

Just ring KBC mortgages helpline and request break fee calculation. Be aware it may take them several days to process the request because they are getting so many at the moment. They will ring and let you know the fee if any then issue the letter which contains the document you need to sign and return. You have 10 working days from that phone call(will be same on the letter) to avail of the break offer.

DaveyDave

Are rates confirmed as going up in July? What effect will this have on people? Was just looking at current rates and BoI have a 4 year 1.95% green rate for 60-80% LTV, suppose I'll wait if they're going up.

Bobeagleburger

Would a mix of N26 and Revolut be sufficient to cover everything?

irishgeo

More than likely apart from lodging cash and cheques but a credit union savings account would cover that.

macvin

https://www.boards.ie/discussion/comment/119195907#Comment_119195907

Interest rate is less of an issue for you as the balance is not huge. Current the interest portion is €243/month. (2.25%). If you take the 10 year 2.85% with KBC, repayments will go up by about €60 per month and in 10 years time you balance will be about 58k

At the KBC 5 year rate (2.4% assuming current account discount), your payment will go up by about €20 a month and at the end of 5 years the mortgage balance will be about 95k.

Its a toss up between the 5 year and 10 year for you. I'd slightly favour the 5 year due to the smallish balance you have.

derekbro

https://www.boards.ie/discussion/comment/119198994#Comment_119198994

I have been looking at the BOI rates and most of them are only for switchers or new customers. I presume we will be existing customers when the mortgages move over and will only be able to move to the existing customer rates whcih are quite high once the the KBC fixed period ends. I'll have to check my break fee to see if it makes sense to move.

Ros1234

Hi guys, great thread, really helpful to read back through the comments when debating my own predicament.

Currently with KBC variable at 3% with 205K outstanding over 22 years. (LTV <50%, A2 BER rated house)

Debating switching to Fixed with KBC for 5 years at 2.4% or 10 years at 2.8%

But also debating switching to Avant for 10 years at 2.4% but costs would be €1,500 for the switch and all the drama with it, currently have all the documentation submitted to Avant but not sure what offer they'll give me by the time its approved.

Any advice greatly appreciated.

macvin

https://www.boards.ie/discussion/comment/119200159#Comment_119200159

I'd go 10 years @ 2.8%. At that point your balance will be circa 125k, so interest charge will be less onerous no matter what the rate.

5 years just a little too short in your case as you'd be subject to BOI rates at that point and a balance of about 175k with still 17 years to go. So the safe route is 10 years @ 2.8%

Bobeagleburger

This thread over on Askaboutmoney is priceless. Plug in your details and one of the lads over there will give you all the best switching options. One of the best threads on the net imo.

https://www.askaboutmoney.com/threads/mortgage-switching-in-ireland-%E2%80%93-break-fee-calculations-and-savings-estimates.226638/

macvin

https://www.boards.ie/discussion/comment/119200461#Comment_119200461

Its this thread that is more relevant.

https://www.askaboutmoney.com/threads/should-borrowers-with-trackers-consider-fixing.227263/page-3#post-1774617

Give your details and you'll get an advised response. But generally it is mover trackers which are 2%+ that benefit from looking at fixing.

People have been so used to 0% rates that they forget that a more normalised ECB rate is about 2%.

bugsyb4

Anyone an opinion on whether AIB green rate of 2.10% will go up in July or is it likely to remain the same for a bit longer and potentially go up in Sept?

We are in process of switching end of Aug but wondering should we try bring switch forward to guarantee this rate. Rang current mortgage provider KBC and they say break fee was around €38. Prefer to hold tough and see out our current fixed rate but wondering will that come back to haunt us!

Any advise appreciated, thanks.

macvin

https://www.boards.ie/discussion/comment/119200816#Comment_119200816

Finance Ireland just announced rate increase on all their fixed products - it takes effect on Monday - the increases are up to 1.2%

You can be 99.999% certain that all institutions will be increasing fixed rates and may do so before the ECB announces it as the financial markets are already starting to price it in, especially the bond markets.

And you will find that fixed rate increase will apply within days - you get the rate that is available at drawdown. Avant were unusual in giving advance notice.

If you have current account with KBC, I'd be taking either the 5 year 2.4% or 10 year 2.8% rate today - I simply would not be waiting many more days

German 10 year rates are now almost 3.5%.