Permanent TSB is to raise its standard variable rate for mortgage customers to 4.5% from 9 June.

The bank said the increase, from the current rate of 4.34%, was reflective of its lending costs and would also apply to buy-to-let mortgages.

Customers with tracker, fixed-rate or managed variable rates would not be affected.

New mortgage customers on managed variable rates - the rate of which varies depending on the loan-to-value ratio - would also see a rate increase of 0.12% from 9 June.