AIB has announced a 0.5-point increase in its variable interest mortgage rates, as expected.
The bank's standard variable rate will rise to 3.25%, from 2.75%.
The new rates will come into effect from tomorrow and follow a 0.45% increase from Bank of Ireland last week.
A statement from the bank said that funding on wholesale money markets for Irish financial institutions remain difficult.
'Unfortunately, we have little choice but to introduce this pricing change, which is a measured response to the significant challenges which must be overcome if we are to achieve an economic return on our loan book,' commented the bank's head of mortgage products Michael Quirke.
The bank also said that its fixed rates for new customers will increase from tomorrow.
