KBC Bank Ireland is to increase its mortgage rates for new and existing customers from next month.
The bank said it would increase its standard variable mortgage rate for owner occupiers from 3.24% to 3.65% from May 1. For investors, the standard variable rate will increase from 4.29% to 4.5%.
The bank is also bringing in a discounted variable rate for new home buyers, which will be 3.1% for the first two years of the mortgage term.
KBC is also raising some of its fixed rates from April 19, but it says these will not apply to existing fixed rate customers for the rest of their current term.
The bank's home loans director John Delaney said the increases were due to continuing high costs to banks of borrowing money on international markets. KBC has about 10% of the mortgage market here.
