KBC to cut fixed interest mortgage rates by up to 0.35%

KBC Bank Ireland is set to increase competition in the mortgage market by cutting three of its fixed-interest rates by up to 0.35 per cent. It also plans to increase the sum it pays to those switching their home loans from another bank by 50 per cent to €3,000.

From May 2nd, KBC will lower its two-year, three-year and five-year fixed mortgage rates for those with a loan-to-value ratio of between 80 and 90 per cent. The two-year rate will reduce by 0.25 per cent to 3.4 per cent, the three-year product will decline by 0.35 per cent to 3.3 per cent, and the five-year by 0.2 per cent to 3.5 per cent.

The new rates will be available for both new customers and existing KBC borrowers, whether on a variable rate or at the end of an existing fixed-term contract.

€3,000 contribution

All mortgage customers can also continue to avail of the 0.20 per cent mortgage rate discount where they hold a current account with KBC and mandate their salary to that account.

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In addition, homeowners who switch their home loan to KBC from another institution will receive a €3,000 contribution towards their costs of moving the mortgage. This is up from €2,000 to date.

The contribution is open to any customer who switches to KBC before September 30th.

KBC is also extending its 50 per cent off offer for home insurance in year one of their loan for all new residential mortgages movers until the end of September.

Long-term value

Commenting on these moves, Darragh Lennon, KBC Bank Ireland's director of products, said: "We want to continue to offer great long-term value to customers by lowering our fixed mortgage rates further. We also recognised that switching your mortgage can be daunting and are offering those who want to move their mortgage to KBC €3,000 that can be used to help with some of the costs associated with making the switch.

“We are confident that first-time buyers, switchers and movers will find our mortgages offer the best long-term value available.”

Ireland's mortgage market was valued at €5.7 billion in 2016 and is expected to increase by a mid-teen percentage this year as more new housing comes on stream. KBC has a share of the market of more than 10 per cent with the biggest player being AIB, who wrote 38 per cent of all new home loans in the first two months of 2017.