AIB has announced that it is to cut its standard variable rate by 0.25% to 3.4%.
A similar rate cut will be applied to its loan to value mortgages which will see the rate there fall as low as 3.1% depending on the size of the loan as a proportion of the value of the property.
The new rates will be available to new and existing customers and will apply to owner occupier and buy to let mortgages.
The changes will take effect from July 1.
The state owned bank is also offering a new €2,000 contribution towards the professional fees for customers who switch to it.
The changes will mean that an owner occupier customers with a €200,000 mortgage on a 25 year term will save an additional €320 per annum.
This is the fourth rate reduction announced by AIB in 18 months.