The chief executive of AIB says the bank will look at reducing its variable interest rate for mortgage customers in June.

David Duffy says if the costs at the bank come down, it is possible that mortgage holders will see a further cut.

AIB, EBS and Haven introduced a 0.25% cut to their variable rates in December.

The interest being paid by variable mortgage holders has been sharply criticised lately.

Mr Duffy is appearing before a session of the all-party finance group to face questions about mortgage policy and AIB's strategy on repossessions.

The committee has been holding regular meetings with all the main banks to monitor their progress.

Mr Duffy says if its costs continue to fall, variable mortgage holders could see a further cut this summer.