Fixed Mortgage Dealsfixed mortgage business
KBC reacted quickly with its own announcements, as with the last reduction of the floating base in May 2016. A new 10-year fixed-rate mortgage will be introduced, which will be available to new and certain clients from 2 October.
Starting 2 October, KBC will allow borrower with a loan-to-value of less than 60% to set their mortgage interest level at market-leading 2.95% over a 10-year horizon. Currently, the Bank of Ireland offers a 10-year fixed interest of 3.80% and is the only major institution that allows borrower to set interest levels for this term.
For example, KBC's new interest rates will spearhead the 10-year fixed interest rates once they come into force. It is important to remember that the Bank's new interest rates include a rebate of 0.2% on the mortgage interest available to its checking accounts clients. Let us take a look at an example of what the new KBC tariff means for your bag.
Suppose you are a second or third party purchaser who wants to buy a home worth 500,000 and has to rent 250,000 to make the sale, i.e. you have an LTV of 50% and would therefore be eligible for the new KBC tariff. Below the bank's new interest you can set your interest for 10 years at 2.95%, which means a redemption of about ?1,380 per month.
There is much to say for the peaceful mindset you get from setting your interest in Ireland for that notoriously vacillating mortgage year. Indeed, 70% of KBC's new mortgage clients have chosen fixed interest over the last three months/year. KBC is to add a 10-year fixed 2.99% to its new 2.95% LTV for clients with an LTV below 80%.
Here, too, the rebate of the banks of 0.2% for giro accountholders is included. These rates are likely to be more preferred by first-time purchasers, who normally need to lend large portions of the value of a home to make a sale. Thats would give you and LTV of 75% and would qualifiy you for KBCs 2. 99% rates.
With the new interest payment date of the Savings Banks, your redemption would be about 952 per month, fixed for a ten-year period. KBC's new interest tariffs are available to both new mortgage clients and current beneficiaries, who currently have a floating interest tariff or reach the end of a fixed maturity.
It also offers a 50% discount on KBC household policy for an entire year for new clients and 3,000 euros cash back for clients changing mortgage. Here is a listing of KBC's new mortgage interest rate, which will be among the most highly competetive on the mortgage markets from 2 October. KBC new mortgage interest is good for clients who are beginning to raise their option levels and lower their interest rate.
This move, in response to recent interest rates reductions by AIB, is a step towards reintroducing competitive strength to the mortgage markets in Ireland. Register in our one-month e-mail for many useful financial information and advice on how to reduce your budget bill costs.