Will increase interest rates on new fixed rate mortgages by a further 0.75% from tomorrow- Permanent TSB
Variable mortgage rates will remain unchanged, as will existing fixed rates. But variable rates on secured and unsecured business term loans for existing and new business customers will also increase by 1%.
However, as a boost to savers, some deposit rates will also rise by 0.5% from March 14.
PTSB said any customer who has received an offer letter based on the current fixed rates currently being offered can complete the drawdown of the loan at that rate or before the current loan offer's expiry date until June 2, is the fastest.
This is the third time the European Central Bank has increased the cost of home loans since it started raising rates in July last year.
In January, it raised fixed rates by an average of 0.51% and implemented its first increase in November, which averaged 0.45%.
The ECB has raised rates five times since last summer, adding a total of 3% so far, and another 0.5% hike is expected next week.
While major banks here have been relatively slow to offer interest rate hikes to mortgage customers compared to European banks, the pace has picked up in recent months.
However, lenders have been slow to raise deposit rates, putting pressure on savers to increase the amount they pay.
The interest rate paid on online regular saver account amounts up to €50,000 will increase from 0.35% to 0.75% and the rate for 21-day regular saver account balances will increase, PTSB said.
The rate offered for fixed term deposits of 6 months to 5 years will increase from 0.20% to 0.50%.
The latest move means many of PTSB's fixed mortgage rates for a standard first-time buyer will now be above 4.50%.
This is the third time the PTSB has raised mortgage interest rates since July.
