KBC cuts mortgage interest rates

The bank says it's rewarding existing customers and hoping to attract new business...

KBC cuts mortgage interest rates

KBC Ireland, Facebook

KBC Bank Ireland is lowering a range of fixed and variable mortgage rates by between 0.1% and 0.6%.

These new offerings will be available to both new and existing KBC mortgage customers.

The bank comments that this decision is part of its "ongoing commitment to help ensure customers have the lowest monthly repayments possible."

Its mortgage customers can continue to avail of the 0.20% mortgage rate discount where customers open and mandate their salary to a KBC Current Account.

KBC is also offering €2,000 towards professional fees for all mortgage customers (switchers, movers, first time buyers and buy to let) and has extended its offer of 50% off KBC home insurance for all new mortgage customers in year one until December 31st.

Eddie Dillon, Director of Product with KBC Bank Ireland, said: "We’re acknowledging and rewarding the loyalty of our existing customers while giving both home buyers and switchers a really compelling reason to move to KBC. These rates make KBC mortgages the most compelling and competitive in the market today.

"This evolution of our mortgage offering is the latest step in a range of reductions we have offered our existing mortgage holders in recent months," he continued.

The bank put forward a number of examples in order to showcase the savings that the rate cut will offer customers:

An existing customer with a €250,000 mortgage balance on a standard variable rate at 4.25% and 20 years remaining and a loan-to-value ratio (LTV) between 80% and 90% can save €98.19 per month, and €23,565 over the term by availing of the reduced LTV variable rate of 3.50%.
 
A similar customer could also increase their savings in year one to €174.01 per month and €25,261 over the term by availing of the one-year fixed rate of 2.90% (rolling to 3.50% on conclusion of fixed term).
 
The bank's standard variable rate remains at 4.25%.