KBC fight back against new mortgage rules

In an attempt to attract mortgage holders KBC Bank Ireland have announced they are reducing fixed mortgage rates. They are also offering an extra discount to new current account holders.

Customers opting into a five-year fixed mortgage will get a rate of 4.5pc, compared to an existing rate of 5.4pc, while those opting for a two-year fixed rate will get a rate of 4.4pc, compared to the existing 4.65pc. Those already on fixed mortgages will see no change.

A further discount of 0.2 percentage points is available for the life of the mortgage to those who get their salary paid into a KBC current account and pay the mortgage by direct debit. This applies to those on both fixed and variable mortgages.

Reactions to the move have been positive all round. KBC Ireland head of retail banking Dara Deering said: “We are committed to rewarding customers who do more of their banking through KBC.

“We have had a strong customer reaction to our 0.2pc current account mortgage discount offer so far, with over 90pc of those switching their mortgage to KBC also opening a KBC current account.”