It's your Mortgage Day!
An average KBC mortgage holder could save €17,441 over the full life of a mortgage
Almost a third of all mortgage holders do not know how much they could save over the term of a mortgage if they changed provider, new research for KBC Bank Ireland has found.
The research has shown that less than one in ten adults who have a financial product plan to switch their current account, savings or mortgage to another provider over the next 12 months, despite the range of discounts and offers available for switchers and new customers.
The research was carried out by Ignite Research, on behalf of KBC Bank Ireland, ahead of KBC’s Switcher Week which starts today (Monday) and runs until Saturday, May 28th. Switcher Week aims to encourage consumers to learn more about the benefits of moving their personal banking to KBC.
KBC Bank Ireland Director of Retail Products, Eddie Dillon, said there has never been a better time for customers to switch to KBC.
“With low variable rates for new mortgage customers and reduced fixed rates for new and existing customers there has never been a better time to switch your current account and mortgage to KBC,” Mr Dillon said.
“The research found that 65% of mortgage holders said lower monthly mortgage repayments would be the most likely factor to make them switch to another provider. We have been listening to this feedback from customers and have already responded by lowering monthly mortgage repayments irrespective of loan-to-value ratio or mortgage term.”
“In addition 87% have not switched their bank in the last three years, but 55% said they would switch their current account for free banking or lower fees and charges, and 21% for a bank that offers rewards and discounts. The KBC Extra Current Account offers a range of benefits like bonus rates on savings, discounts on mortgages and personal loan, plus an overdraft and cash rewards on credit cards, as well as free day to day banking.”
On the subject of mortgages, the research found 30% of mortgage holders do not know how much they could save over the term of a mortgage if they changed provider, with 17% believing they would not save anything if they switched. Up to 37% said if they saved money on their mortgage payments they would pay off other household bills and outgoings, with 30% opting to save for a rainy day, and a quarter putting the savings towards a big buy, like a car, or going on holiday.
To illustrate the level of savings possible with KBC, an average mortgage holder could save €48 on their monthly repayments and € 17,441 over the full life of a mortgage compared to others in the market.
This is based on a mortgage of €250,000 over a 30 year term, the savings taking a KBC Current Account discounted rate of 3.65% v a market average of 3.99% (the average is based on AIB, Haven, EBS, BOI, PTSB, UB & Pepper 80-90% variable rates).
KBC’s leading variable rates for new mortgage customers hit the market last week, as well as reduced fixed rates for new and existing customers. The new rates came into effect last Tuesday, May 17th 2016. The bank has also has extended its offer of €2,000 towards professional fees for all mortgages switched to KBC up until end September 2016, and offers 50% off KBC home insurance for all new mortgage customers in year one.
72% of those questioned bank most often online, either through a website or an app, with a quarter using a branch or hub. Some 23% of those with a current account said they would be likely or very likely to switch if a bank offered a digital app so that there was no need to go into a branch in person to sign up or follow up with paperwork by post. This trend is in line with KBC’s investment in digitisation, which included the recent launch of KBC’s new mobile app - the first in Ireland to allow customers to open a current account completely on their mobile phone without visiting a hub or posting any paperwork.
Elsewhere, while 57% of adults questioned admitted to switching their mobile phone in the last three years, four out of ten changed their car, 23% changed their hairdresser/barber and 9% their partner. Just 1% switched their favourite football team.
20% of those questioned who have a financial product said that they would be undeterred from switching their main banking provider tomorrow and would make switching a priority when it makes sense to switch. During KBC Switcher Week, KBC has a dedicated switcher team to help make the switch as easy as possible. Further information is available at www.kbc.ie, by calling the Switcher Team on 1800 51 52 53, by dropping into one of KBC’s 15 Hubs around the country or by speaking with your financial advisor.