Two more financial institutions have announced plans to increase the standard variable mortgage rates.

This afternoon, EBS said it would lift in variable rate by 0.6 points from May 1. Earlier, Bank of Ireland has confirmed that it was raising its variable rate by 0.5 points from April 16.

Existing Bank of Ireland mortgage holders on standard variable rates will see repayments increase by between about €80 and €90 a month on a €300,000 mortgage. Bank of Ireland said that while the increase is 'regrettable', it had no choice but to make the move.

The bank said that the cost of funding mortgages has become increasingly costly, as it is paying more to customers for deposits than it is receiving for mortgages. 'As a result of this, our current mortgage pricing is unsustainable', it stated.

EBS also said the current rate was no longer sustainable, and that the increase would help meet the cost of borrowing funds from retail, corporate and wholesale markets.

AIB raised its variable mortgage interest rate by half a percentage point last month, following a similar move by Permanent TSB in February.

Announcing pre-tax losses of €1.8 billion for the nine months to the end of last December, Bank of Ireland indicated last week that it planned to increase mortgage rates in the near future.

The move follows the transfer of the bank's initial tranche of commercial property loans to the National Asset Management Agency, and comes a day after the European Central Bank announced it was keeping euro zone interest rates unchanged at 1%.

ICS Building Society, which is owned by Bank of Ireland, also announced interest rate increases across its variable rate mortgages. The changes are also effective from April 16.