Watchdog delivers ‘unredacted’ reassurance KBC Bank customers won’t lose out

The competition watchdog and Bank of Ireland have moved to provide “unredacted” reassurance KBC Bank customers won't lose their competitive mortgage rates when the Belgian-owned lender closes its doors.       

Bank of Ireland had struck a deal to acquire €9bn in performing mortgage loans from KBC and the transaction was approved by the Competition and Consumer Protection Commission on Tuesday.     

In response to queries by the Irish Examiner, the watchdog said it could now lift previously redacted details that clearly spell out that KBC customers who transfer to Bank of Ireland will keep their competitive rates under all circumstances.                  

KBC provides among the cheapest fixed and variable rate mortgages in the Republic that are in many cases significantly lower than the rates offered by Bank of Ireland. 

Some brokers and mortgage customer advocates had said Tuesday's announcement left it unclear whether KBC customers under the transfer to Bank of Ireland would be fully protected when customers moved off their fixed-rates to standard variable rates in future years.                                

However, the competition watchdog told the Irish Examiner it had agreed with Bank of Ireland to lift previously confidential clauses that spell out that KBC customers would continue to benefit from lower standard variable rates.