House buyers face inflated mortgage cost after KBC exit

KBC Bank Ireland looks set to leave the Irish market after announcing talks with Bank of Ireland. File picture

House buyers could face paying inflated mortgage costs following the shock decision by KBC Bank to quit the market — a move that has fuelled calls for major State intervention.

KBC is the second lender after Ulster Bank in recent months to exit Irish banking, despite pledging as recently as February that it would stay.