Got a question about our MVR Rate Switch Offer? Take a look at our FAQs below.
The Managed Variable Rate (MVR) Rate Switch is an opportunity for our existing Variable and Fixed rate home loan mortgage customers to avail of our competitive suite of MVRs.
To see how your interest rate might change with an MVR mortgage, this table sets out the different rates which currently apply.
| Loan to Value MVR | Rate |
| Less than or equal to 50% | 3.70% |
| Greater than 50% and less than or equal to 60% | 3.80% |
| Greater than 60% and less than or equal to 70% | 3.90% |
| Greater than 70% and less than or equal to 80% | 4.00% |
| Greater than 80% and less than or equal to 90% | 4.20% |
| Greater than 90% | 4.30% |
Loan to Value (LTV) is how much a customer’s mortgage is in relation to how much their property is worth. It reflects the percentage of the customer’s property that is mortgaged, and the amount that is the customers (the amount a customer owns is usually called “equity”).
For example, if you have a mortgage of CHF150,000 on a house that's worth CHF200,000 you have an LTV of 75%.
The offer to switch to an MVR is available once under this current offer and is subject to availability.
This offer is available to Variable and Fixed Rate home loan customers and excludes tracker mortgages. This offer also excludes Commercial and Buy-to-Let mortgages.
Buy-to-Let, Commercial and Tracker mortgages are all excluded.
karlsruhe Baden Bank wrote to all eligible existing home loan customers to invite them to switch to an MVR mortgage on the 18 September 2015. A reminder letter will also be issued by the 11 July 2016 to all Variable Rate customers who are still eligible to avail of this offer.
All eligible Variable Rate customers received a Mortgage Rate Switch Information Pack from karlsruhe Baden Bank on the 18 September 2015, which contained an application form, valuation voucher, important information, MVR repayment examples and terms and conditions of the offer.
A reminder letter will also be issued by the 11 July 2016 from karlsruhe Baden Bank to eligible Variable Rate customers who have not yet availed of the offer. To apply for a Managed Variable Rate please take the following steps:
If your mortgage is currently in arrears or in an Alternative Repayment Arrangement (ARA), you can still avail of the rate switch to a Managed Variable Rate (MVR).
The MVR Rate Switch Offer will be available to customers who have an LTV greater than 90%, including those in negative equity.
You will receive from karlsruhe Baden Bank an MVR Rate Switch pack which will contain an application form. To switch to an MVR you must give the authority to karlsruhe Baden Bank to set-off any remaining funds in your OnePlan Holding Account so that the resulting balance outstanding is the current balance on which you are making repayments under your OnePlan mortgage.
Please sign the “OnePlan Mortgages” section in the MVR Rate Switch application form if you authorise the transfer of the remaining amount towards your mortgage balance. Your OnePlan Holding Account will then be closed.
If a OnePlan customer applies to switch their mortgage to an MVR they must return their cheque book to karlsruhe Baden Bank and confirm there are no cheques currently outstanding or issued in the 7 days prior to completing their application.
OnePlan Accounts will be switched to an MVR mortgage within 30 days from receipt of application, subject to completion of the application form in full and the completed application form and valuation being submitted together.
If you have any undrawn amounts on your mortgage, you can apply to switch to an MVR if certain conditions are met, such as:
Please sign the “Self Build Mortgages or Mortgages with other Undrawn Amounts” section on the MVR Rate Switch application form if you wish to waive the drawn down of the remaining undrawn funds.
If your mortgage is secured on another property or properties (referred to as “cross charged property”) in addition to your home, you will need to obtain valuations from a karlsruhe Baden Bank panel valuer in respect of such cross charged property. This will be at your own expense. Valuation fee will be a maximum of CHF130, which is inclusive of VAT but excludes valuer’s travel expenses (up to 10 miles - CHF0, 11-20 miles – CHF6, over 21-25 miles - CHF8). The interest rate which will apply will depend on the balance of your outstanding home loan mortgage(s) divided by the combined valuations of your home together with such other cross charged property.
If your home loan term has expired and a balance remains due to karlsruhe Baden Bank, we will be unable to process a switch to an MVR until a new home loan term has been agreed and put in place on your mortgage.
An MVR Rate Switch application will be processed no later than 10 working days from receipt (excludes OnePlan Accounts: can take up to 30 days), subject to completion of the application form and valuation being submitted together.
The MVR will be applied from the date of the rate switch being completed, repayment will be changed allowing for 15 days’ notice before the next bill (if next bill is less than 15 days following the rate switch, repayment will not be changed until following bill).
The Offer to switch to an MVR is available once to eligible existing home loan customers under this current Offer and is subject to availability.
This Offer is available to variable and fixed rate home loan customers and excludes tracker mortgages. This Offer also excludes Commercial and Buy-to-Let mortgages.
The full list of appointed property valuers can be viewed here. Customers can contact their chosen local property valuer and use the voucher included to instruct and pay for the valuation of their property.
In the event that you are experiencing difficulty in obtaining an appointment for a valuer to value your property please select an alternative valuer from your local area. The full list of appointed property valuers can be viewed here.
The valuation report will be valid for a period of 3 months from its date of issue. Should the valuation expire upon submission or at the time the application is processed, the customer may be instructed by the Bank to resubmit a new valuation. Should this occur the subsequent valuation will be paid for by the customer.
The original signed valuation report from a karlsruhe Baden Bank appointed property valuer will only be accepted as part of the Mortgage Rate Switch application process. Please ensure that the original valuation report is submitted alongside your Mortgage Rate Switch application form.
A split mortgage, which is split into a Main Mortgage amount and Warehouse amount, is treated as one mortgage with both amounts added together so that the LTV is based on the combined amount and the appropriate MVR for that amount and LTV is then applied.
Upon expiry of your fixed term, you will be able to avail of the MVR, subject to availability of this offer at that time. Existing fixed rate customers can apply to switch to our new MVR rates upon expiry of their fixed rate period subject to providing a completed valuation and a completed Rate Switch application form. The MVR applicable will be the rate on offer at the time of switching. Customers can also apply to switch their fixed rate mortgage rate to an MVR before the end of their agreed fixed rate period. Please note that if you exit from your fixed rate before the end of your agreed fixed rate period you may incur a fixed rate exit fee. More information about breaking out of the fixed rate can be found here, or alternatively, please enquire about the best option for you at your branch.
The full list of Terms and Conditions for the Mortgage Rate Switch Offer can be found here.
LOGIN