NON-banking lender Finance Ireland has become the third lender to raise mortgage rates.
The mortgage provider is raising its three- and five-year fixed rates by 1.2%, a bigger hike than expected.
It also increased its fixed rates at 10, 15 and 20 and 25 years by 0.5 pc.
The new prices apply from Monday 27 June.
A Finance Ireland spokesperson said: ‘Our variable and buy-to-let rates remain unchanged.
Anyone who now has or receives a loan offer before rates go into effect Monday week will have two months to withdraw loans at the current rates.
The lender added: “”All loan offers issued before the close of business on Friday June 24 will be honored at current rates provided the funds are drawn before the close of business on Friday August 12.
“When a loan offer subsequently expires or a change is requested to an existing loan offer, the new offer/revision will be issued on our increased rates.”
It comes after ICS Mortgages announced a second increase in mortgage costs in May.
Its three- and five-year fixed rates will increase by 1pc on all loan-to-value (LTV) tranches. It comes just two months after raising its rates. The latest 1pc increase means that the ICS five-year fixed rate will rise from 2.6pc to 3.6pc.
This means an extra €131 per month, or €1,572 per year, in repayments for a homeowner with a mortgage of €250,000 with a term of 25 years and a loan-to-value ratio of 80pc.
Ahead of Money, which shook up the market here by launching mortgages at less than 2% at the end of 2020, is raising its five-, seven- and 10-year fixed rates for new borrowers by 0.2 to 0.3 percentage points.
Last week, the European Central Bank signaled that it could raise its key rate by 0.75 percentage points by September.
Mortgage holders are set to be hit by the first in a series of interest rate hikes from next month, a move that will boost annual repayments by more than €1,000 for a family with a tracker typical.
Floating rates and future fixed rates should also be increased.
The ECB surprised market watchers when it said it could then follow July’s 0.25 percentage point rise with a 0.5 percentage point hike in September, if high inflation persists in the euro zone.
Most commentators were expecting a 0.25 percentage point increase this summer, followed by another of the same magnitude in the fall.
The ECB has not raised rates for 11 years.
Some 450,000 mortgage account holders are vulnerable to increases in the ECB’s main refinancing rate because they are variable or tracker rates.
Every 0.25pc hike in ECB rates will cost €30 more in monthly repayments for a €250,000 tracker mortgage.
This amounts to €360 per year. This is based on a tracker with a margin of 1.25pc over the ECB rate, with 20 years left to pay.