KBC Bank Ireland has become the latest financial institution to announce an increase in its standard variable mortgage rates.
The bank has announced a 0.2% increase in its variable mortgage rate from 1 September. The rate will rise from 3.65% to 3.85%.
It said that the average monthly increase in loan repayments for a homeowner with a €200,000 mortgage over 20 years will be €20.82.
'The decision to increase our standard variable rate reflects the continuing high cost of attracting funds to support the mortgage market in Ireland,' said John Delaney, director of the bank's homeloans division.
Earlier this week AIB announced a 0.5% increase in its variable interest mortgage rates, with the rate rising to 3.25% from 2.75%.
Bank of Ireland and ICS Building Society last week also announced increases in their variable mortgage rates.
