KBC Bank Ireland has announced it will reduce its standard variable rate for all mortgage customers by a quarter of a percent to 4.25%.

The new rate will be applied to all existing customers, irrespective of loan to value or repayment status.

The bank says customers will receive communication of their new mortgage repayments in the coming weeks and the rate reduction will take effect from the beginning of December.

In addition, customers who open a current account with KBC can have their standard variable rate for their mortgage further reduced to 4.05%

Meanwhile, KBC earlier confirmed a number of their customers had experienced issues with their bank accounts today.

Members of the public expressed concern to the bank after certain lodgements were not processed into their accounts this morning.

The bank told RTÉ the problem has now been resolved, but would not reveal what caused the lodgement issue in the first place.