AIB has announced a reduction in its fixed mortgage rates - its second reduction in less than a year.

The bank is cutting its three-year and five-year fixed mortgage rates from 2.85% to 2.55%.

It is also reducing its "Green" five-year fixed rate from 2.5% to 2.45%.

AIB said that customers currently on a variable rate of 3.15% who switch to its new Green five-year fixed rate, will see a reduction of €96 in their monthly mortgage repayments - €1,152 a year - based on a mortgage of €270,000 over 25 years.

AIB's intermediary channel, Haven, has also introduced three and five year fixed rate reductions.

To further improve its offering to mortgage customers, AIB said it is due to introduce the country's first end-to-end online digital mortgage offering for customers.

First time house buyers and movers will now be able to conduct their entire mortgage application process online.

AIB said this will allow customers to calculate their borrowing capacity, complete an application in minutes and secure approval in principle online as well as being able to uploading documents and mortgage drawdown.

The bank has also redesigned its mortgage website, which is mobile optimised to provide customers with easily-accessible information.