AIB, EBS and Haven are to reduce fixed and variable mortgage rates for new and existing customers.

This marks the first time that mortgage lenders have reduced variable rates in a number of years. The move will benefit at least 146,000 existing mortgage account holders in Ireland.

AIB Group said customers with a €200,000 mortgage will save up to €334 per annum, based on a 25 year term, under the revised rates.

The reductions include a 0.25 per cent decline in the standard variable rate for customers and the introduction of new lower Loan to Value (LTV) and fixed rates across AIB, EBS and Haven.

AIB Group is also introducing new fixed mortgage rates across all three brands. These include 3.80 per cent in respect of its three-year fixed rate and 3.90 per cent for its five year fixed-rate mortgages.

AIB and Haven are cutting all LTV mortgage rates by 0.24 per cent, while EBS is reducing all its LTV rates by 0.25 per cent. AIB and Haven customers with an LTV of 50 per cent or less will see their interest rate drop to 3.85 per cent, while EBS customers will see it fall to 3.80 per cent.

"AIB is now in a position to reduce variable mortgage interest rates due to the bank's underlying positive performance and funding cost reductions. The introduction of the bank's new fixed rate pricing will provide better value and certainty for customers," said Bernard Byrne, director of personal, business and corporate banking, AIB Group.

Revised variable rates come in to effect from December 1st with fixed rates to come into effect from 4 November, the group said.

AIB said existing fixed-rate customers will not be impacted until their current fixed-rate term expires. However, they will then have the option to fix again at the new rates once their current term expires.