Non-bank lender ICS Mortgages became the first provider to raise rates after the ECB’s 0.75% hike this week.
ICS will increase the fixed and variable rates of its own mortgages by 1%.
The increase will apply to all loan value ranges.
Rates on buy-to-let mortgages will also increase between 0.7% and 1.25%, depending on the mortgage product and loan value range.
Existing borrowers with a fixed rate will not see any change in what they are paying.
The changes will take place from December 1.
In circumstances where applicants have received a fixed rate loan offer from ICS, this offer will remain valid once withdrawal is completed by November 30.
“These rate increases reflect the evolving interest rate environment and the ongoing upward pressure on the cost of financing fixed interest rate products,” the company said, reports RTE.
“As a prudent and sustainable lender, ICS Mortgages remains committed to offering competitive mortgages and we will continue to review our position on interest rates on an ongoing basis,” it added, reported RTE.
Last month, ICS announced that it would raise fixed fees for new customers by 0.5% following the ECB’s latest rate hike.
This was the third time this year that the lender raised fixed rates after hikes in March and May.
Other lenders are expected to follow suit soon after the substantial increase announced by the ECB on Thursday.
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