Ulster Bank has announced a new suite of three-year, five-year and seven-year fixed interest rate mortgage options for customers.

As is the case of many of Ulster’s competitors, the mortgage rates on offer depend on the relative size of the customer’s mortgage to the value of his or her home, but the new three-year fixed rate option begins at 3.3 percent for customers with a 60 percent loan to value ratio.

Ulster Bank’s current standard variable rate of 4.3 percent remains unchanged, though customers can avail of lower variable rates depending on their loan to value ratio.

Finance Minister, Michael Noonan had set a deadline of June first for banks to move on mortgage interest rates, the Government has been frustrated by the lack of action from lenders.

Speaking in the Dail on Wednesday, Taoiseach Enda Kenny described the banks' position as "not morally justifiable."

Ulster Bank's move has been welcomed by the Tánaiste Joan Burton, who now wants other banks to follow suit:

“It is interesting that quite a lot of those deals are offering a reduction and I see a lot of the money advisers suggesting strongly that people should have a look at those."

The bank’s Director of Customer Experience and Products, Maeve McMahon said: “We believe we can help the majority of new and existing customers who may be searching for a lower rate to reduce their repayments either by fixing at some of the lowest rates in the market or reviewing their loan-to-value and availing of our lower LTV bands."