Sunday 18 March 2018

KBC hikes rates as it takes on new business

Charlie Weston

LENDER KBC Bank has made it more expensive for both new buyers and for those who transfer their home loan to it to take out a mortgage.

KBC is one of the few lenders accepting mortgage switches. However, yesterday the bank said it would increase the interest for new residential customers who opted to take out a two-year or three-year fixed rate.

The two-year rate goes from 3.45pc to 3.70pc, with the three-year rate rising from 3.75pc to 3.90pc. The new rates are effective from October 1.

The mortgage lender left its standard variable rate unchanged.

Director of mortgage services at broker body PIBA, Rachel Doyle, said any home owner who did not have a tracker would be well advised to lock in to a fixed rate now. "Rates, both variable and long-term fixed, are on the rise so delaying a decision could be costly."

AIB has one of the best three-year fixed rates at 3.65pc, while Irish Nationwide offers the same rate for those borrowing less than 80pc of the value of the home.

Irish Independent

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