AIB, Bank of Scotland, IIB and National Irish Bank are the latest financial institutions to cut mortgage rates in response to the European Central Bank's (ECB) quarter point cut in its key interest rate.

AIB said its standard variable mortgage rate would be reduced to 5.425 per cent from 5.61 per cent with effect from May 16th.

Bank of Scotland is cutting its standard variable rate by 0.2 percentage points to 5.39 per cent while IIB and NIB are reducing their variable rates by a quarter point to 5.89 per cent.