KBC Bank has announced a 0.25% cut in its standard variable rate for all variable customers. We take a look at the rate cut and how much it could save you.
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If you’re a KBC mortgage customer, you could be in for a bit of a Christmas treat this year. KBC Bank has just announced that they’ll be cutting their standard variable mortgage rate by 0.25% for all PDH customers from 1st December.
And in case you were wondering… PDH is bank-speak for your gaff, your house or your flat – so if you live in it, and you have a mortgage on it, you should get a break on it.
KBC’s standard variable mortgage rate is currently 4.50%, so from 1st December that will come down to 4.25%. It doesn’t sound like an awful lot, but little cuts in mortgage rates can make a big difference to your payments.
For example, if you’ve got a 30 year €200,000 mortgage with KBC right now, this rate cut should save you nearly €30 a month, €354 a year or €10,616 over the life of the loan. Not bad!
KBC did actually announce a mortgage rate cut a few weeks back, but that one was for new customers only. Now the bank is spreading the good will to all customers. Well, nearly all. If you picked up on one of those fixed rates KBC was promoting earlier this year, well, it’s fixed so no new cuts will be applied.
Mortgage Rate Cuts
KBC’s announcements follow similar rate cuts from Ulster Bank, AIB and Permanent TSB leaving Bank of Ireland as the only major bank not to announce a rate cut.
Current Account Discount
It is worth pointing out that KBC offers 0.20% off mortgage rates to customers that open a KBC current account. And needless to say, most people with KBC mortgages sign up for a current account to get the discount.