Bank of Ireland said today it will increase interest rates for a number of mortgage and deposit products.

It said this follows increases of 2.5% in European Central Bank rates since July of last year.

The bank has announced a 0.75% increase for fixed rates on new mortgages - effective from today.

It also announced a 0.5% increase for the fixed rates available to existing mortgage customers.

This includes customers who are coming to the end of their fixed rate period and are seeking to re-fix their mortgage, and tracker rate or variable rate customers who wish to move to a fixed rate.

Customers who already have credit approval and who draw down their mortgage by February 21 can still avail of the previous fixed rates, it added.

The bank had previously increased its fixed rates for new mortgages in November.

Bank of Ireland today also announced a 0.5% increase for "Regular Saver" personal deposit accounts, which will allow customers earn 0.75% on their "Mortgage Saver", "Goal Saver" and "Child Save" accounts, capped at up to €15,000.

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The increase takes effect from Friday January 27.

The bank also said it will launch a new one year term deposit account for personal customers at 0.5%, which is capped at €100,000.

According to recent Central Bank figures, Irish new mortgage rates are the third lowest in the euro area after Malta and France.