Non-bank lender, ICS, has become the first mortgage provider to increase its fixed rates for new customers as a result of the rising cost of finance in the international markets.
All the institution's fixed rates for owner occupiers are to rise, at levels of between 20-45bps.
The changes will take place with immediate effect, with rates staying the same for those currently on a fixed rate.
Variable rates offered by the lender are also to remain the same.
"These fixed rate rises reflect the significant upward pressure on the cost of financing fixed interest rate products in the international markets," said Ray McMahon, Chief Commercial Officer, ICS Mortgages.
"This is a result of considerable rate movements in capital markets due to inflationary pressures being felt across Europe and globally."
"As a prudent lender, ICS Mortgages remains committed to offering competitive mortgages and we will continue to review our position in fixed interest rates on an ongoing basis."
Davy banking analysts, Diarmaid Sheridan, said this is the first rise in mortgage rates for some years and follows the recent increases in market funding rates.
"Non-bank lenders have rapidly increased their presence in the market during 2021, availing of the opportunity presented by the planned exits of Ulster Bank and KBC," he said.
"We expect the market to remain competitive due to the increased presence of both non-bank lenders and the intermediary origination channel."
ICS Mortgages has over €1 billion of assets under management.
"After experiencing mortgage rate decreases for a number of years, the uplift by ICS Mortgages is a reminder that we are in a low-rate environment, with mortgage rates the lowest they've been for over 12 years," said Martina Hennessy, Managing Director of mortgage advice company doddl.ie.
"Upward pressure on funding costs could result in other lenders also increasing rates in the not too distant future."
"These rate increases, while unwelcome, are reflective of volatility in global capital markets on which ICS, as a non-bank lender, are reliant for funding.
