KBC Bank Ireland has announced it is increasing its standard variable mortgage rate by 0.25%.

The bank said its standard variable rate for owner-cccupier customers will increase from 4.25% to 4.5% and the rate for its buy to let customers will increase from 4.9% to 5.15%.

It said the average monthly increase in repayments for KBC mortgage customers will be €22 and the first revised repayment will be payable from April 1.

The bank said the increase is due to the continuing high cost of funding mortgages in the Irish market.

''We are very mindful of the impact of this decision on customers at this challenging time'', KBC Bank Ireland's chief executive John Reynolds said.

He also said that the bank has resolutions in place to assist customers who have trouble in meeting their mortgage repayments. ''Our priority at all times is to help customers meet their mortgage repayments to the bank thereby protecting their family home,'' he added.