AIB has announced it's cutting mortgage interest rates on both owner occupier and buy to let mortgages. These rate reductions will apply to both new and existing customers.

The bank says it's reducing the standard variable rate by a quarter of a percent to 3.9 percent.

It follows calls from the Taoiseach Enda Kenny yesterday for banks to cut their mortgage interest rates. 

The lower SVR rates come in to effect from early June, while the revised fixed rates will be introduced next week.

These rate reductions will apply to both new and existing customers.

It's the second rate cut by AIB in 6 months.

AIB’s Director of Retail and Business Banking, Bernard Byrne said: “AIB’s second reduction in mortgage interest rates in six months reflects the Bank’s improved financial performance. We committed to keeping mortgage rates under review and to reduce these rates for both new and existing customers as soon as our funding conditions allowed. We now have a clearer view of our financial position and we are able to pass on the benefits.’’