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KBC Bank Ireland Plc (“KBC”) Variable Rate Policity Statement as at 18/01/17
Warning: We may change the interest rate on this loan. This means the cost of your monthly repayments may increase or decrease.
We set and change variable rates by reference to a variety of factors;
As the factors and criteria set out above will impact different categories of loan to a greater or lesser extent from time to time, we may, when setting or changing variable interest rates decide to apply different variable interest rates to different categories of loan.
We may also decide based on the factors set above to amend one type of variable interest rate (e.g. our standard variable rate) but not another type of variable interest rate (e.g. our Loan to Value Variable Interest Rate).
We urge all of our customers to consider their mortgage options on a regular basis. There are several options available to customers who wish to avail of a lower interest rate.
Customers are entitled, with our agreement, to fix the interest rate on a loan for a period of time (usually 1, 2, 3 or 5 years). Fixed rates may be lower than variable interest rates. During the fixed rate period however customers who choose a fixed rate will not benefit from reductions which may apply to variable interest rates, however they will benefit compared to those on variable rates if variable interest rates increase. If the loan is redeemed either fully or partially during the fixed period, a break funding fee may be applied.
If a customer has a KBC Current Account he/she may avail of a discount, currently 0.20% on the applicable mortgage interest rate if the loan is for a principal private residence. In order to avail of this discount, customers are required to mandate their salary to their KBC Current Account and are required to pay their KBC mortgage by Direct Debit from their KBC Current Account. This offer is available to borrowers whose loan is in respect of their principal private residence only and is not available for loans for investment properties. It should be noted that if a customer ceases to meet any of the required conditions the discount will no longer apply. Further information on this discount and the terms and conditions that apply to same are available on the KBC website – www.kbc.ie/current-account/current-account-mortgage-bonus.
KBC offers a range of variable and fixed rates based on the amount of the loan relative to the value of the property over which it is secured. These rates can vary for new and existing customers. It is possible for an existing customer to avail of new business rates which may provide a reduction in the interest rate applicable. This offer is available with respect to loans for principal private residences only.
To avail of the offer as an existing customer, if your property has increased in value since the time you drew down your mortgage, and/or you have paid down a sufficient portion of your mortgage you may benefit from qualifying for a rate in a lower LTV bracket. To avail of this option under our Existing Customer Rate Offer, you are required to organise a new valuation of your property with one of our approved valuers, at your own expense.
If you wish to select a rate based on the existing LTV Percentage (%) applicable to your mortgage you can do so without getting a valuation completed. Where you decide not to get a valuation completed please be aware that the LTV Percentage will not be re-calculated by KBC and you will not be eligible for an interest rate from a different LTV Rate Band.
Further information including an application form, a list of approved valuers and the terms and conditions applicable are available on the KBC website.
Information on all interest rates currently offered by KBC is available on our website. We encourage our customers to contact us if they consider that there may be a better offer available for them, by phone on 1800 93 92 44 or by e-mail to firstname.lastname@example.org.
This document is subject to change and notification of any changes will be provided by KBC. The current version of this document can be found on www.kbc.ie.