KBC Bank Ireland raises mortgage interest rates

KBC Bank Ireland’s homeloans division has today announced a rise in interest rates for new and existing mortgage customers.

KBC Bank is to introduce increases in interest rates for Owner Occupier and Residential Investment mortgages.

It has also announced its new facility for home purchase customers, a discounted variable rate, and a new five-year fixed rate for Owner Occupier customers.

KBC Bank’s Owner Occupier Standard Variable rate will increase from 3.24% (APR 3.28%) to 3.65% (APR 3.71%), while the Residential Investment Standard Variable rate will increase from 4.29% (APR 4.37%) to 4.50% (APR 4.59%). These rate changes are effective from May 1, 2010.

KBC Bank’s discounted variable rate for new home purchase customers is designed to assist home purchasers by discounting its Standard Variable Rate by 0.55% for each of the first two years of the mortgage term.

KBC Bank has also revised its fixed rates with effect from April 19, 2010, for its Owner Occupier customers.

These rate changes will not affect existing fixed rate customers for the remainder of their current fixed rate term. The increase in rates will only apply to existing mortgage customers who choose to move to a fixed rate.

John Delaney, director of the Homeloans division at KBC Bank Ireland, said: “The increases in our rates reflect the continuing pressures on the cost of funding to lenders. KBC Bank remains fully committed to providing mortgage finance in the Irish market and to offering its customers a range of competitive interest rates”.