First Active and National Irish Bank have cut their mortgage rate by 0.25 per cent to 5.25 per cent and 5.35 per cent, respectively.

The EBS, which currently offers the lowest variable rate at 4.85 per cent, is introducing a range of fixed rate products with cuts of a quarter to a third of a percentage point. The cuts mean that most of the major lenders have now announced their new rates following on from the European Central Bank's surprise half-point cut two weeks ago.

Some lenders, however, remain out of line. AIB is charging 5.5 per cent, and Ulster Bank 5.53 per cent for standard variable rates.