KBC mortgage holders have been advised to consider switching their loan to another bank before it automatically passes onto Bank of Ireland.

KBC has done a deal worth €5bn to sell its loans and deposits to Bank of Ireland.

Borrowers automatically switched to Bank of Ireland will be on the same interest rate as they were with KBC. But once any fixed-rate deals end, they will be offered Bank of Ireland's current rates, which are higher than KBC's.

Financial consumer expert Brendan Burgess, of Askaboutmoney.com, advised: "Avant and Finance Ireland have the best long-term and medium term fixed rates.

"The deal made with Bank of Ireland means that KBC customers are denied the best rates and the 2% cash-back on offer to other new and switching customers."

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"The commission's decision made no reference at all to Bank of Ireland's very high rates for existing customers and their practice of charging existing customers more than new customers, which will result in a huge increase in mortgage repayments for KBC customers with the move to Bank of Ireland," Burgess added. .

Financial campaigner David Hall, of the Irish Mortgage Holders Organisation, said: "The key part is go look at what's out there and see if any competition arises out of this. This is where you need to use the brokers. They know what deals are being offered by the banks, and this is an ideal opportunity to find out what's on offer.

"If you're not on a fixed and you're going to be transferred across, your rate stays as it is, but everybody should be looking around."

The CCPC announced yesterday it had cleared the deal despite "significant competition concerns" about KBC's exit from the Irish market.

After the deal was given the go-ahead yesterday, Bank of Ireland chief executive Francesca McDonagh said: "We are committed to delivering a smooth and seamless migration for KBC customers, ensuring strong customer protections and financial stability within the Irish banking sector and broader economy."