Irish Life & Permanent said it will raise the rate on its standard variable mortgage by 0.5pc from February 1, citing the “high cost” of funds required to finance its mortgage loan book.

“As has been previously advised to the market,” Irish Life’s banking unit Permanent TSB “is facing significant financial challenges,” the lender said in a statement today. The “high cost of funds continues to pose challenges.”

Irish Life said the change in the rate will affect just under 80,000 residential mortgage customers.

- Fergal O’Brien

© Bloomberg

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