KBC Bank Ireland has announced it is to reduce mortgage rates for new customers but there is still no relief on offer for existing variable rate customers.

The bank said its 50 per cent Loan to Value (LTV) variable rate will change from 3.7 per cent to 3.45 per cent. The 60 per cent LTV rate declines from 3.70 per cent to 3.60 per cent and the 80 per cent LTV from 3.80 per cent to 3.65 per cent.

In addition, the bank’s 90 per cent LTV rate will fall from 4.1 per cent to 3.85 per cent.

New mortgage customers can obtain further savings if they have a current account with KBC.

The bank said new customers, which it defines as first-time buyers, movers and switchers, could save more than €16,000 over a 20-year term on a €300,000 mortgage under the new changes.