Non-bank lender Finance Ireland is set to increase its variable mortgage rates by 0.25%.

The company said the change will take effect from 12 September.

It said the hike follows the recent 0.25% rate increase from the European Central Bank.

The lender did not announce any further changes to its fixed rates.

“Finance Ireland has a range of mortgage offerings, and customers are advised to contact the lender or a broker or to view the CCPC website if they think they may qualify for a different product or a different rate on their mortgage,” the company said in a statement.

Non-bank lenders have been under greater pressure than the main banks to increase rates in recent months as they are funded from the wholesale markets, where rates have increased considerably.