First Active is the latest lending institution to raise mortgage interest rates in response to the last rate increase by the European Central Bank. With effect from April 10th, the standard variable rate will rise to 4.88 per cent from 4.63 per cent for new business.

For existing variable rate customers, rates will go up by a quarter of a percentage point subject to the terms of the individual contract. First Active's two-, three- and five-year fixed rates remain unchanged.