KBC reduces fixed mortgage rates by up to 0.55%

KBC reduces fixed mortgage rates by up to 0.55%

KBC has reduced some of its fixed rates across one, two, three and five years.

The move comes in response to a recent reduction in rates by Ulster Bank.

Among the reductions, the bank has reduced its one-year fixed rate for first-time buyers from 2.90% to 2.50%. Its three-year fixed rate has been reduced from 3.00% to 2.65%, while its five-year fixed rate has been slashed from 3.35% to 2.80%.

The bank is now the market leader across all these time periods.

A first-time buyer borrowing €250,000 over 30 years would save almost €75 a month by availing of KBC’s new five-year rate.

Meanwhile, KBC’s three-year fixed rate for movers and switchers, or first-time buyers with over 20% deposit, has been reduced from 2.90% to 2.60% while its five-year rate has been reduced from 3.05% to 2.65%.

Thee new rates will be available to both new and existing KBC mortgage customers and come into effect from September 3, 2018. All rates incorporate the 0.20% discount available to KBC current account customers.

"KBC’s reduction in rates is unsurprising given the recent reductions by Ulster Bank and are great news for mortgage customers in Ireland," said Daragh Cassidy, head of communications with bonkers.ie.

"The question now is not if, but when, AIB and the rest of the competition will follow suit."

"There’s now a huge variation in interest rates and cashback incentives across all the different lenders so my advice to first-time buyers is to do your research, shop around early and find out who’s offering the best deal for you.

If you already have a mortgage, then look into switching. In recent times Irish mortgage holders have been reluctant to switch, which is crazy given the potential savings involved.

"Many lenders now have dedicated switch teams in place to make the process as easy as possible so it often won’t be as much hassle as you think it might. And while there are costs associated with switching mortgage provider, in some cases banks will provide a cashback incentive to those who switch or a contribution towards the legal fees."

Digital Desk

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