Bank of Ireland is to increase its interest rates on fixed rate mortgages for new and existing customers taking a new fixed rate by 0.25%.
The move includes those who are reaching the end of a fixed rate period and wish to re-fix again.
Tracker or variable rate customers who wish to move to a fixed rate will also be impacted.
But variable rates are to remain unchanged.
The changes are effective from today.
However, applicants who have credit approval and who draw down their mortgage by August 24th will still be able to access the previous fixed rates.
The lender has blamed its decision on the cumulative 4% increase in ECB rates since this time last year.
However, in a boost for savers, the bank is also increasing what it pays on a range of deposit accounts.
The interest rate on its SuperSaver account is to climb by 0.5% to 2%.
The bank is also introducing a new 2-year term deposit account at 2% for personal and business customers.
While on its 1-year term deposit accounts, the fixed rate is to rise by 0.25% to 1.5%.
The variable rate on new and existing 31-day notice accounts is also to increase by 0.47% to 0.5% for personal and business customers.
The changes to the deposit rates take effect from tomorrow.
The bank's move comes ahead of an expected further increase in interest rates by the European Central Bank tomorrow.
Markets are widely expecting that the ECB’s Governing Council will agree to a further 0.25% increase in rates.
