It seems that there are thousands if not hundreds of thousands of people paying more than they need to for their mortgages, because they are afraid to ask for better terms. In some cases a new valuation and filling in a simple form will get them a lower rate. The information may be somewhere on the banks’ websites but thy are not writing out to individual customers telling them this. That way they can tell the government they are reducing rates but because people have to actively apply for the new rates and most will not without prompting they still actually collect payments at the higher rates. Customers on trackers or in arrears may be excluded. Customers on fixed rates may have to pay a break fee on the current agreement but some may still benefit on new terms. Phone your bank with your mortgage details and let them work out for you what makes most sense. You have nothing to loose by asking your mortgage provider if you can get a better deal, so ask!
If you know someone who might benefit from this information please pass it on to them.
The following is taken directly from KBC’s website but similar is likely to apply with at least some of the other banks as well. Ask them!
Existing Private Dwelling Home (PDH) Customers have something to dance about. To reward your loyalty as a KBC customer, you can now apply to move to our new Business Loan to Value (LTV) Rates. Simply follow the steps below and you could have some of the lowest mortgage repayments on the market.
Step 1: Get your home valued. Choose a KBC appointed valuer from our nationwide panel. Provide the valuer with the instruction letter from the information pack. The valuer will provide you with a copy of the valuation report to send to us along with your application form.
Step 2: Using your outstanding mortgage balance and property value you can calculate your Loan to Value (LTV) to find out the LTV Percentage (%) applicable to your mortgage. Then choose a rate type that suits you. Read the terms and conditions. We advise you to seek independent financial & legal advice before completing the application form. Please refer to eligibility conditions below* to ensure you are eligible for the Existing Customer Loan to Value Rate Options.
Step 3: Download and complete the application form and send it with a copy of your valuation report to Freepost, KBC Bank Ireland, Sandwith Street, Dublin 2.
What happens next? All customers will receive a letter confirming your LTV, the outstanding balance of your mortgage and the full details of your new rate and revised repayment.
*You may not avail of the Option if your mortgage account is currently on a Tracker Interest Rate. If only part of your mortgage account is on a Tracker Interest Rate, you may avail of the Option in respect of the portion of the mortgage account that is not on a Tracker Interest Rate however the aggregate amount outstanding in respect of all portions of your mortgage account will be used for the purposes of calculating the Loan to Value Percentage.
The Option is not available if your account is in arrears unless you have entered into a mortgage arrears resolution option with us. If you are currently availing of an interest rate reduction as part of a mortgage arrears resolution option you are not entitled to apply for the Option. Customers with investment or pension back mortgages cannot avail of the offer.
Customers with a Loan to Value of >90% also cannot avail of the offer, these customers can however avail of our existing suite of 2, 3 and 5 year fixed rates for existing customers.
This option is not available to existing buy to let mortgage customers.