First Active has joined other lenders in raising its mortgage interest rates. The former building society has announced an increase of 0.39 of a percentage point in its standard variable mortgage interest rate to 4.38 per cent. The increase will take effect from January 4th.

The bank has also announced higher rates for new customers and higher fixed rate products. It's one year discounted variable rate for new customers rises from 3.29 per cent to 3.89 per cent. First Active is offering a fixed interest rate of 5.29 per cent over one year, 5.60 per cent over two years and 5.99 per cent over five years.