KBC Bank follows AIB with new fixed rate mortgage

New rate comes into effect on October 2nd and will be open to all customers

KBC confirmed that 70 per cent of all customers drawing down a mortgage in the last three months opted for a fixed rate. Photograph: Bryan O’Brien

KBC confirmed that 70 per cent of all customers drawing down a mortgage in the last three months opted for a fixed rate. Photograph: Bryan O’Brien

 

KBC Bank Ireland has introduced a new low-cost fixed-rate mortgage deal for customers, days after AIB announced a series of rate cuts.

KBC Bank said in a statement on Wednesday, the new “market-leading” 10-year fixed mortgage offering would provide better value and certainty for customers over the long term.

Customers with a loan-to-value ratio of less than 60 per cent can fix the interest rate on their mortgage for 2.95 per cent for 10 years, while customers with a loan-to-value ratio of less than 80 per cent can avail of a rate of 2.99 per cent.

The new rate comes into effect on October 2nd, 2017. It also comes as KBC confirmed that 70 per cent of all customers drawing down a mortgage in the last three months opted for a fixed rate.

The new rates are available to both existing and new mortgage customers of KBC, whether they are currently on a variable rate or arrive at the end of an existing fixed term rate.

The rates are inclusive of a 0.2 per cent mortgage discount rate for customers holding a current account with KBC.

Benefit

In terms of variable rates for new mortgage customers, KBC offers 3.1 per cent for customers with a maximum loan-to-value ratio of 80 per cent and a one-year fixed rate of 2.9 per cent for new and existing customers.

Customers switching to KBC will benefit from a €3,000 contribution towards their costs. The contribution is open to any customer who drawdown their mortgage by the end of the year.

KBC is also extending its 50 per cent off KBC Home Insurance offer in the first year on all new KBC residential mortgages for first-time buyers, switchers and movers until December 31st.

KBC Bank Ireland director of products Darragh Lennon said the bank was seeing “strong demand” from customers who want to fix their mortgage repayments.

Challenger bank

“As Ireland’s leading challenger bank, our strategy is consistently about providing customers with long term value on their mortgage,” he said.

“We are seeing strong demand from customers who want to fix their mortgage repayments and this has increased significantly this year. With the introduction of these new market-leading 10 year fixed interest rates, customers can get certainty about their mortgage repayments over the long term at a rate that is as low as many short term fixed rates.

“Our team is ready to talk to customers about their mortgage or any of their financial needs on a 24/7 basis and are confident this new product offering will appeal to a broad range of mortgage customers.”