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Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Was communication with them not clear or did their contract entitle them to a tracker through the duration of their mortgage even if they had a few journeys within that period?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: KBC, however, clearly resisted the inclusion of these customers. This was two years into the tracker investigation.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: If we consider that group of customers, it is possible that some of them have been on the wrong rate for a decade. Most of them, presumably, were on-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: When was the earliest that the mortgages in this group of 1,907 mortgages were taken out?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Was that a fixed rate for one or two years?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Maybe, therefore, these customers have been on the wrong rate for nine years as opposed to ten years. Are those customers, generally, on variable rates now?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Would that be 3.5% or 4%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: That is 4.25%, or 4.05% if they have a current account with KBC.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: What is the tracker margin they are entitled to?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Typically, Mr. Verbraeken is saying 1.25% above the ECB rate. Some of them today are paying 4.25%, a difference of 3% on their mortgage, nine years later. If they have a mortgage of €200,000 in simple interest terms, not annuity but simple interest, that is €6,000 a year of a difference in the interest. The impact of that over a period of up to nine years on those people is...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: I appreciate that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Today, if a person has a mortgage of €200,000, that is €6,000 a year.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: That is €500 a month extra which is still being taken. By when has KBC committed that they will all be on the correct rate?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: By the end of February, that is the commitment. There is a lot of work to do in February if it is going to make that deadline.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Does the €120 million cost include the cost of the 100 staff?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: What is the administrative cost to KBC of staff time and resources?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Already 33 homes have been lost and Mr. Verbraeken says he expects that number to increase.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: On what is he basing that expectation?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: How many of the total number of accounts relate to people who no longer are customers of KBC?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Approximately 615 of the 2,974 are extinguished.

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