KBC exiting Ireland

@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.

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.

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.

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

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.

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.

For anyone that requested a break fee letter from KBC, how long did it take for you to receive it please?

Problem is AIB may have changed by then. I would expect most banks will have changed their fixed rates in the next couple of weeks or at the latest immediately after the ECB announcement on July 6th and the increases will be 0.5-1% as fixed rates here are quite low and in the lower half of EU rates (Irish variable rates are high in comparison to eu)

If they do, you will have the back-up of being able to take up the KBC rates within 24 hours or so without any paperwork / fees

Anyone who has or is switching their mortgage, how long did it take for solicitor to get deeds from kbc?

Ours were requested on the 27th May but no word yet.

Thanks, that’s a fairly slow process. Almost a month to refix!

The application form does not include the current account discount rate. On the form it mentions that you have to ring them. I was told on the phone that they’d automatically apply the discount if you’re already on it. However, I did request in my email that the discount be applied, just in case.

We received our break fee form a week after requesting it.

Yes, unless you get a new valuation done (must be dated within 3 months)

If you want to change LTV you need to get a new valuation done.

I've heard and read so many differing opinions. Some reckon interest rates will rise steadily for next 2/3 years and then drop back down again. Others say interest rates will still be high in 5 years time and take 10 years to get back where we are now

How do you apply for this?

On the Bunq website it will only accept a Dutch mobile number?

**** edit - found it...... DOH! *****