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Mortgages

Mortgage market heats up as KBC slashes its fixed rates by up to 0.55%

Daragh Cassidy

Daragh Cassidy

Head Writer

The recent competition in the mortgage market shows no signs of abating with news that KBC is reducing its mortgage rates again.

KBC has announced today that it's reducing its fixed rates over two and 10 years. The move comes in response to recent rate reductions by arch rivals Ulster Bank and Bank of Ireland and follows a reduction by KBC to some of its other fixed rates around this time last year.  

Among the reductions, KBC has reduced its two-year fixed rate for first-time buyers with a 10% deposit from 2.60% to 2.30%. 

Those lucky enough to have a 40% deposit or more can now get a rate of just 2.25% over two years, the lowest in the entire market.

Meanwhile its 10-year fixed rate has been slashed from 3.75% to 3.20% for those with a 10% deposit, while those with a 40% deposit or more will get a rate of just 2.85%. 

The bank is now the market leader across the one, two and 10-year periods.

The changes mean that an average first-time buyer borrowing €225,000 over 30 years would save almost €69 a month by availing of KBC’s new 10-year rate or almost €8,300 over the course of the 10-year term.   

What are KBC’s new fixed rates?

Fixed rate

Old rate

New rate

Reduction

2-year <60% LTV

2.50%

2.25%

-0.25%

2-year 60-80% LTV

2.55%

2.30%

-0.25%

2-year 80-90% LTV

2.60%

2.30%

-0.30%

10-year <60% LTV

3.05%

2.85%

-0.20%

10-year 60-80% LTV

3.20%

2.99%

-0.21%

10-year 80-90% LTV

3.75%

3.20%

-0.55%

Who are the new rates available to?

The new rates will be available to first-time buyers, movers and switchers.

And if you're thinking of switching your mortgage to KBC, you'll also get €3,000 back in cash. Not bad!  

All the rates incorporate the 0.20% discount available to KBC current account customers. 

The trend of banks reserving their best mortgage rates for their current account customers is nothing new so it could be wise for customers to switch current account in order to avail of the best mortgage rates being offered by their lender of choice.

The rates are also available to existing customers who apply via KBC's Existing Customer Rate Offer.

When do the new rates come into effect?

The new rates come into effect from 6th August 2019. 

Announcing the new rates, KBC Bank’s Director of Products, Fergal O’Riagain said:

“At KBC, we want to be a positive force for choice in the Irish banking sector and this rate reduction is part of our ongoing commitment to provide Irish people with better long-term value and lower mortgage repayments. We know that our customers are looking for greater value and certainty in their repayments over longer periods and our new pricing reflects these needs. We would encourage existing or potential homeowners to come and talk to us about getting the best value for their mortgage.”

Should I switch mortgage provider?

Many people are under the false assumption that you have to stick with the same mortgage provider throughout the entire term of your loan. However, like any household bill, you should review your repayments regularly.

With competition in the mortgage market continuing to heat up, now is an excellent time to review your monthly repayments to see what you could save by switching to a better rate as the savings over the lifetime of the loan can be huge.

And let's face it, who doesn't want a few extra hundred euros in their pocket each month!? 

And of top of the savings, all the main lenders will offer you cashback to help with the costs of switching too. 

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