EBS is raising its standard variable mortgage rate for the third time this year, with the move to add €12 to monthly repayments for the average affected loan.

The society’s director of retail business, Dara Deering, said the new rate reflected “the continued increase in the cost of funds to the business”.

The 0.25 percentage point rise, to 4.93 per cent, will apply from the start of October.

This would add almost €40 to the monthly repayment on a mortgage of €300,000. About 48,000 mortgages will be hit by the change, representing 60 per cent of the EBS mortgage book.

EBS previously raised its standard variable rate in February and in June this year.