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KBC resists SVR mortgage cut

KBC Bank has reduced its fixed rates for new and existing mortgage customers, instead of cutting variable rates on its home loans.

KBC Bank has one of the highest variable rates in the market at 4.5pc. It is now offering existing customers the option of fixed for between two and five years at rates as low as 3.90pc.

The 3.90pc two-year fixed rate only applies to those who take out a current account with the bank and have their mortgage payments made through this account.

KBC's Eddie Dillon defended the bank's failure to cut its variable rate, arguing that the move in February to allow existing customers get 0.2pc off their mortgage rate for opening a current account was an effective reduction in the rate.

KBC said a customer with a €300,000 mortgage and 4.5pc variable rate can save €1,736 a year, on a two-year fixed rate of 3.90pc, with a KBC current account.