EBS Building Society today announced that it is to increase its standard variable mortgage rate by 0.6 points from 3.23% to 3.83% (3.90% APR) from 1 August.
EBS says increased cost of funds on international markets means that it is still charging less to members than it is paying for funding.
EBS said a previous increase by the society did not close the gap that exists between its variable rate and the rates that it is paying on the open market.
Dara Deering, Director of Membership Business said: ‘Unfortunately, as there has been no relief in the cost of funds to EBS this further increase is required.’
On 1 May, EBS also raised its rate by 0.6 points, from 2.63% to 3.23%.
Mortgage broker Haven has also increased its rate by 0.6 points.
