Bank of Ireland has said its tracker mortgage rates will increase by 0.75% after today's announcement by the European Central Bank of a 0.75% interest rate increase.

For most customers, this change will take effect from 28 September.

The bank said that customers do not need to take any action right now.

It said it will write to all tracker mortgage customers confirming the new interest rate, the effective date, and their new repayment amount.

The bank said that no decision has been made in relation to other products.

"The bank continues to keep all rates under ongoing review, and will clearly communicate any future rate change decisions at the appropriate time," the bank added in a statement.

AIB Group, which includes AIB, EBS and Haven, said its tracker customers will also see their rates rise following the latest increase.

It said it will write to them confirming the new interest rate and effective date.

"AIB did not increase standard variable and fixed rate mortgages when ECB interest rates increased in July and we continue to keep our rates under review," it said in relation to variable and fixed rate products.

Permanent TSB said its fixed and variable rates would also remain unchanged.

"Under the contractual terms and conditions of tracker mortgages, the rates on these mortgages automatically increase or decrease to reflect any change in the ECB base rate," a spokesperson said.

"The Bank will contact tracker mortgage customers over the coming weeks to advise them of their rate change."

Ulster Bank said it will write to all of its customers currently on a tracker to outline their new rate and inform them of their new monthly repayment amount.

It has not indicated any action on variable rate loans.

KBC Bank Ireland said those customers on a tracker rate will have today's rate hike automatically applied.

"For all other mortgage rates KBC continuously keep any changes under review, as per normal business practice," it said.

A spokesman for Finance Ireland said it had no comment to make about its plans at this point.

ICS Mortgages said it notes the European Central Bank's decision and will carefully review the potential impact on its mortgage portfolio.

While Avant said it had taken no pricing decisions at this point, following this morning's announcement.

Joey Sheahan, Head of Credit at online brokers, said a mortgage holder with a tracker rate that has a margin of 1% above the ECB rate would pay an additional €72.39 a month on a €200,000 loan with 25-years remaining.

While a variable rate customer whose rate will increase from 3.15% to 3.9% will have to pay €80.56 more per month on a similar sized loan with 25 years outstanding.

Brokers Ireland said even though it had been predicted by some commentators, the scale of the increase is very disquieting for consumers.

It said the real worry now is the question of how long the increases will go on for and what level they will reach.

"The unfortunate thing is that if there is a new cycle of interest rate increases, they will be coming on top of a whole host of other increases for home owners, particularly in energy," said Rachel McGovern, Director of Financial Services at Brokers Ireland.

"If there is a positive it is that there are still good long-term fixed interest rates in the market, rates that historically were never as good as they are now."

"In fact, it is only in recent years we've seen truly long-term fixed rates."

She added that an unfortunate aspect of increasing interest rates is that it will impact aspiring home buyers, especially those on average incomes, who will now have to plan for increased repayments and the likely higher stress testing by lenders.