Thousands of mortgage holders are set to see their repayments increase by more than €300 this year after KBC Bank Ireland announced yesterday that it was increasing it standard variable rate by 0.25%.
The rate change, which kicks in from the beginning of March, will see KBC's standard variable rate for owner occupiers increase from 4.25% to 4.5%, while the rate for buy-to-let customers will increase to 5.15% from 4.9%.
Commenting to the Irish Times, the bank said it was "mindful" of the impact the rate hike would have on its customers but blamed the increase on the "continuing high cost of funding mortgages in the Irish market."
KBC Bank Ireland hopes to double its number of mortgage customers over the next three to five years.
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