Bank of Ireland is to increase standard variable mortgage interest rates by half a percentage point.
The 0.5% rise will take effect for existing customers on September 22 and for new customers from August 15..
The rate hike follows European Central Bank increases in April and July -which BOI says it had delayed passing on to customers.
Interest charged on personal credit cards and overdrafts will also increase by half a percentage point.
“This has been a difficult decision and one we have considered very carefully," the bank said in a statement.
"It is over 12 months since we last increased variable rates for any of these products and we have delayed passing on both the April and July ECB rate increases up to this point," the statement added.
"However, the price at which we provide lending facilities must reflect the cost of funding those facilities and we have no option other than to increase our rates to reflect the two ECB rate increases."
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