NON-bank lender Finance Ireland has become the third lender to increase its mortgage rates.
The mortgage provider is increasing its three and five-year fixed rates by 1.2pc, a larger than expected rise.
It is also increasing its 10, 15 and 20 and 25-year fixed rates by 0.5pc.
The new rates apply from Monday, June 27.
A Finance Ireland spokesperson said: “Our variable and buy-to-let rates remain unchanged.”
Anyone who has now or who receives a loan offer before the rates come into effect on Monday week will have two months to draw down loans at existing rates.
The lender added: ““All loan offers issued by the close of business on Friday, June 24, will be honoured at current rates provided funds are drawn by the close of business on Friday, August 12.
"Where a loan offer subsequently expires or any amendment is requested to an existing loan offer, the new/revised offer will be issued on our increased rates.”
It comes after ICS Mortgages announced a second rise in its mortgage costs in May.
Its three and five-year fixed rates will increase by 1pc across all loan-to-value (LTV) bands. It comes just two months after it increased its rates. The latest increase of 1pc means the ICS five-year fixed rate will go from 2.6pc to 3.6pc.
This means an extra €131 per month, or €1,572 a year, in repayments for a homeowner with a €250,000 mortgage over a 25-year term, and an 80pc loan-to-value.
Avant Money, which shook up the market here when it launched mortgages for less than 2pc at the end of 2020, is increasing its five, seven and 10-year fixed rates for new borrowers by between 0.2 and 0.3 percentage points.
Last week the European Central Bank signalled that it may put up its key lending rate by as much as 0.75 percentage points by September.
Mortgage holders are set to be hit by the first in a series of interest rate rises from next month, a move that will push annual repayments up by more than €1,000 for a family with a typical tracker.
Variable rates and future fixed rates are also set to be hiked.
The ECB surprised market watchers when it said it may then follow the July 0.25 percentage point rise with a 0.5 percentage point rise in September, if high inflation persists in the eurozone.
Most commentators had been expecting a 0.25 percentage point rise this summer, to be followed by another one of the same size in the autumn.
The ECB has not raised its rates for 11 years.
Some 450,000 mortgage account holders are vulnerable to rises in the ECB’s main refinancing rate as they are on tracker or variable rates.
Each 0.25pc rise in the ECB rates will cost €30 more in monthly repayments for a €250,000 tracker mortgage.
That works out at €360 a year. This is based on a tracker with a margin of 1.25pc over the ECB rate, with 20 years left to pay.