9,500 residential mortgage accounts will be impacted by the move.
Some mortgage holders with Pepper Advantage are facing interest rate hikes of up to 1 per cent.
The company today announced around 9,500 residential mortgage accounts will be impacted by the move.
In a statement, the firm says it follows the three increases in rates announced by the European Central Bank this year.
The average rate will increase from 5.9 per cent to 6.3 per cent, according to the company.