Around 500,000 Irish mortgage holders are facing increased payments after the European Central Bank raised its interest rates.
It is the first time the regulator has increased rates in 11 years.
It had been hoped it would increase rates by 0.25% - however, this afternoon the bank went further, increasing them by 0.5%.
The change will largely impact on people who are lucky enough to own their own homes.
Mortgage holders on tracker rates will automatically see and increase while those on standard variable rates will likely see them over time.
Those on fixed-rate mortgages should not see any change in their payments for now.
Economist Jim Power said rates could increase as much as 2% in the coming months.
“This won’t be the end of it because inflation is still becoming deeply embedded in the Euro area,” he said.
“I think the ECB will take a view that rates will have to at least rise from 0% at the moment to 2% over the next six to nine months to try and bring inflation back under control.
“So, I think Irish mortgage holders should be factoring in an increase of up to 2%.”
The European Central Bank said it had to increase rates to ensure “inflation returns to its 2% target over the medium term”.