Bank of Ireland and First Active are to cut their standard variable mortgage rates by half a percentage point following the European Central Bank's similar reduction last week.
Bank of Ireland's cut will take effect for new business customers immediately and for existing customers from next January.
The fall will leave Bank of Ireland's variable rate at 4.24%.
First Active's cut takes effect from the start of business next Monday. Its new rate will also be 4.24%.
Both institutions say the cuts will mean that a customer with a €200,000 mortgage over a 20-year term will make a saving of €54 a month.
