Interference between single photons is key for many quantum optics experiments and applications in quantum technologies, such as quantum communication or computation. It is advantageous to operate the systems at telecommunication wavelengths and to integrate the setups for these applications in order to improve stability, compactness and scalability. A new promising material platform for integrated quantum optics is lithium niobate on insulator (LNOI). Here, we realise Hong-Ou-Mandel (HOM) interference between telecom photons from an engineered parametric down-conversion source in an LNOI directional coupler. The coupler has been designed and fabricated in house and provides close to perfect balanced beam splitting. We obtain a raw HOM visibility of (93.5 ± 0.7) %, limited mainly by the source performance and in good agreement with off-chip measurements. This lays the foundation for more sophisticated quantum experiments in LNOI.