KBC Bank Ireland said on Tuesday that it will stop taking new applications for all its products, including mortgages, credit cards and life insurance, from July 15th as the Belgian-owned lender advances its plans to exit the Irish market.
The announcement comes after the Competition and Consumer Protection Commission (CCPC) last week approved Brussels-based KBC Group’s planned sale of its €9 billion in performing loans, mainly mortgages, and its €4 billion-plus deposits book to Bank of Ireland.
KBC Bank Ireland said that, as of the middle of net month, it would no longer be accepting new applications for all products, including current accounts, mortgages, personal deposits, personal loans, home, car and life insurance and personal credit cards. KBC will also no longer be accepting new applications for business banking products from that date.
In cases where customers apply for most of the products, including mortgages and personal loans, by the deadline, KBC Bank Ireland has outlined how it will deal with applications in a questions-and-answers section on its website. In the case of mortgages, customers who are required to file additional documentation will be given 30 days to do so from the date of the request. Those who wish to proceed to loan offer stage must do so before the timeline of approval in principle expires.
“We understand that our customers will be impacted, and we want to assure customers that we are committed to ensuring that any changes ahead are as smooth and as simple as possible,” KBC Bank Ireland said. “We are currently writing to all customers notifying them of the final date for new applications should they wish to apply.”
More than a million KBC and Ulster Bank current and deposit account holders will need to find new account providers within the next year. Ulster Bank is also quitting the market.
