Non-bank lender, ICS Mortgages is set to increase its fixed mortgage interest rates for new owner occupier mortgages by 0.5% from the start of next month.

The lender said the changes will be applicable across all Loan to Value (LTV) bands.

It added that the changes will not impact existing customers currently on a fixed rate or variable rate.

Applicants who have an existing valid loan offer under agreed terms from ICS Mortgages will not be impacted when draw down takes place by 28 October 2022.

"These fixed rate increases reflect the ongoing upward pressure on the cost of financing fixed interest rate products and the evolving interest rate environment," the lender said in a statement.

"As a prudent and sustainable lender, ICS Mortgages remains committed to offering competitive mortgages and we will continue to review our position on fixed interest rates on an ongoing basis," it added.

It's the third time this year that the lender has raised its fixed rates after hikes in March and May.

Daragh Cassidy, from comparison website bonkers.ie said all eyes are now on the main retail banks - AIB, Bank of Ireland and Permanent TSB, to see when they'll increase their rates.

"They’ve absorbed all of the ECB’s 1.25% rate hike for their non-tracker customers so far," he said

"However when the ECB next meets at the end of October it’s likely it will raise rates again by at least 0.50%. It’s at this stage the banks are likely to review their rates," he added.

Meanwhile, Pepper Finance, which manages mortgage loans, has confirmed that certain customers holding standard variable mortgages serviced by the company will see their rates increase by 1.25%.

It said it has started writing to the customers that will be impacted by the changes, and will give them 30 days notice.

"The 1.25% rate increase – is equivalent to the total increase in the ECB rate increase which is being passed on – and will apply to certain residential, Buy-to-Let, and SME customers on Standard Variable Rate (SVR) mortgages, serviced by Pepper and where Pepper holds legal title to the mortgage," the company said in a statement.

It said these changes will not take effect any earlier than the 20 October.

"Pepper will write again to all the customers in October to confirm the new rate, effective date, and new repayment amounts," it said.

"In the meantime, no action is required from customers."