Banks have been giving their initial reaction to a 0.25 percentage point in interest rates announced by the ECB.
This will mean a similar rise for homeowners on tarcker mortgages, which are linked to the ECB rate.
Bank of Ireland and its ICS subsidiary have also announced that they will be raising their fixed mortgage rates. The increases - ranging from 0.7 to 1.3 percentage points - will come into effect from April 15. Bank of Ireland and ICS tracker rates will rise by a quarter-point from Wednesday April 13.
Jonathan Byrne, the bank's head of mortgages in the Republic of Ireland, said fixed rate mortgages had become increasingly costly for the bank in recent months, and its current fixed mortgage rates were 'not sustainable'.
'While we have resisted increasing rates until now, we have no choice but to make this move to ensure we remain open for business,' he added.
National Irish Bank has said it will not be increasing its variable mortgage rate from the current 3.4% following the ECB announcement. The bank also said it would not increase fixed rates, though its ECB-linked tracker mortgages will rise in line with the 0.25-point increase.
