KBC Bank has asked some of its mortgage customers, to whom it has given mortgage approval, if they can postpone drawing down the loans until next year, RTÉ News has learned.
The issue has arisen because the bank is in danger of breaching new Central Bank regulations on mortgage lending.
As part of this latest regulation, only 15% of a bank's loans are exempt from the new rules.
However, KBC bank is in danger of breaching that limit.
As a result it has asked some mortgage customers if they can postpone drawing down the loans until next year in an effort to remain within the 15% limit.
In a statement this afternoon KBC Bank said that it, “like all mortgage lenders, is required to comply with the new macro-prudential lending limits for residential mortgages introduced earlier this year by the Central Bank of Ireland and in meeting these requirements KBC manages its pipeline of mortgage loan offers on an ongoing basis.
“All existing mortgage loan offers in this pipeline will be honoured in full and progress to completion. Exact timelines for mortgage completion can vary greatly from case to case (being subject to a wide range of external factors) and we are working closely with customers to ensure that they have access to the mortgage loan they qualify for whilst maintaining compliance with the Central Bank regulations by year end,” the statement concluded.
