Bank's Christmas bonus for paying your mortgage
KBC Bank has launched an eye-catching incentive scheme to encourage borrowers with a mortgage-restructuring deal to stick to their new repayment plan.
The Belgian-owned bank is offering to repay customers the interest they pay on their mortgage in December, up to a maximum of €2,000.
A letter setting out the terms of the offer has been sent to customers by the bank's mortgage arrears support unit, which works with customers behind on payments.
The cash-back deal is only for customers who have agreed a mortgage-restructuring deal with the bank, and who have subsequently met the terms of the new agreement.
It applies to owner occupiers and so-called "buy-to-let" commercial landlords.
"At KBC Bank Ireland, we aim to find sustainable restructuring options for all our customers who are in financial difficulty with their mortgage repayments," said the bank in a statement.
"We appreciate the effort that our mortgage customers in difficulty are making to meet their restructured repayments and, through this initiative, we are acknowledging those who continue to meet their restructured repayments in full and on time and set up a direct debit mandate on their account." KBC's offer may raise eyebrows, especially among those bank customers who have sacrificed to meet their mortgage and are not in line for any reward.
"The initiative was for customers who have entered long-term restructuring arrangements on their mortgage with KBC and have fulfilled their repayment obligations over a prolonged period of time," KBC said.
Many lenders see re-establishing a "payment habit" for customers with a history of missed payments as a crucial step in tackling arrears.