Permanent TSB has announced big increase in fixed mortgage rates for existing customers coming off fixed rates.

The two-year rate rises from 5.25% to 7.25%, the five-year goes from 5.75% to 8.75%, while the seven- and ten-year rates both rise from 6.1% to 9.1%. The new rates are effective from the start of business tomorrow.

The bank says all fixed rates will remain under review at the cost to the bank of borrowing money continues to fluctuate.

Brokers' group PIBA described the rises as 'shocking' and much higher than anticipated.

INBS halts new mortgage lending

Meanwhile, Irish Nationwide Building Society has stopped new mortgage lending with immediate effect.

The move follows the High Court order earlier this week, which allowed the State to start the process of selling the deposits of Anglo Irish and Irish Nationwide to another institution.

In a letter to mortgage brokers, the society said the court order - which facilitates the restructuring of the institution under the EU/IMF programme - also required it to limit increases in mortgage lending to contractually committed amounts and amounts arising from the restructuring of existing mortgages.

Irish Nationwide said this limited it to honouring offers already made, provided they were completed within a stipulated timeframe.