The European Central Bank has raised interest rates for the first time in 11 years.
The organisation responsible for the Euro has announced an increase of 0.5 per cent.
There are 500,000 Irish mortgage holders on tracker and variable rates who are set to be impacted.
However, it is still unclear whether or not Banks will pass on this extra cost to their customers.
The ECB made the announcement today in a bid to tackle rapidly rising inflation.
The rate had been negative since 2014 to encourage banks to lend rather than deposit money with the ECB.
