Permanent TSB and Bank of Ireland have announced details of planned mortgage rates cuts on some products, the latest move in an increasingly competitive market.

PTSB, which is seeking to raise at least €100m of capital after failing European bank stress tests last year, said it will cut its range of rates for new homeowners by up to 0.42 percentage points.

Permanent TSB's variable rate for new customers where the loan is 50% or less of the value of the property will be 3.76 percentage points, down 0.36 percentage points. 

Customers with a loan-to-value ratio of 70 to 80% will pay 4.07%, a cut of 0.42 points.

Meanwhile, new customers of Bank of Ireland will be able to avail of a 4% two-year fixed rate, or 3.8% if their loan-to-value ratio is below 75%.

The bank is also offering a ten year fixed rate of 4.7% - or 4.5% where the loan-to-value ratio is below 75%.

Bank of Ireland said these rates would be available to existing business from the start of February.

Today's announcements follow a cut by AIB, which in October bucked the trend of lenders not passing on lower European Central Bank interest rates to consumers and cut its standard variable rate mortgage by 0.25 percentage points.