Banks and building societies are continuing to cut interest rates, with most heeding Government warnings to pass on the full 0.5 of a percentage point to customers.
Meanwhile, European Central Bank president Mr Wim Duisenberg yesterday suggested that mortgages could become even cheaper as the bank considers cutting its interest rates still further.
The Republic's biggest bank, AIB, was the only one to cut mortgage rates by less than the reduction in European Central Bank rates but it is still offering the cheapest mortgage, at 3.3 per cent.
The bank defended its decisions, saying it was offering good value to consumers.
Bank of Ireland, ICS Building Society, EBS, First Active and Ulster Bank have all reduced the variable rate of interest on mortgages by the full 0.5 of a percentage point.
AIB has been aggressively chasing new business in the mortgage market and has positioned itself as the cheapest lender.
The EBS Building Society's rates are just above AIB's following the rate cut, at 3.35 per cent.
The other financial institutions are offering mortgages at around 3.5 per cent.
Bank of Ireland was the only institution to also cut the interest rate paid to depositors and to make overdrafts and other loans slightly cheaper.
Customers with Special Savings Investment Accounts at the bank will see the rate of interest fall from 2.5 per cent to 2 per cent.