Ulster Bank and KBC. Is It Still a Good Idea to Apply for a Mortgage?

Ulster Bank and KBC have initiated the process to leave the Irish market yet they still offer mortgages to new customers. Here's what you need to know.

What will happen to any of their mortgages when they leave the Irish market?

Both KBC and Ulster Bank have signed a Memorandum of Understanding (MOU) with other lenders in the Irish market. This is a precursor to a formal agreement whereby KBC intends to transfer it's loans to Bank of Ireland and Ulster Bank to Permanent TSB When the loans are transferred, the new lender is obliged to honour the original terms of the mortgage.

Is it still a good idea to apply for a mortgage at KBC?

Yes it is. KBC and Ulster Bank still have competitive rates so if you're willing to deal with a small inconvenience when the move happens there is a great opportunity to take advantage of rates that others may be put off by. On top of that KBC and Ulster Bank have had some of the quickest turnaround times for applications since their respective announcements. Lastly, the agreements aren't finalised which means they may remain in the market after all.

What does it mean for the market as a whole?

Though interest rates are currently trending downward, generally speaking less competition is a bad thing for consumers as lenders will be under less pressure to undercut their competitors.