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Bank of Ireland offering a rock-bottom interest rate of 2pc for green mortgages

Bank of Ireland has reduced the interest rates on a string of green mortgages and has launched a new rock-bottom 2pc rate.

reen mortgages are now being offered by a number of lenders and the rates are lower than conventional home-loan rates.

All new homes qualify for these mortgages as they are built to high energy-efficiency standards.

Bank of Ireland has increased the discount on green mortgages from 0.2pc to 0.3pc.

The steeper discount will apply to one-, two-, three-, five- and 10-year fixed terms.

It has also launched a highly competitive 2pc four-year fixed green rate for those borrowing €300,000 or more. The rates will apply to new customers who meet the criteria from Tuesday, October 26.

The green discount is available for the purchase of a property with a BER (Building Energy Rating) between B3 and A1, or the building or upgrading of a home to give it a BER of between B3 and A1.

Bank of Ireland’s new high-value fixed rate green offering is set at 2pc for four years fixed, and 2.25pc for those fixing for seven years.

These apply to those borrowing €300,000 or more, and there is no cash back as part of these home loans.

Director of home buying at Bank of Ireland, Alan Hartley, said the lender recognised it has a responsibility and a role to play in supporting energy efficiency.

“We are pleased to be able to offer even better value across our green mortgage range and we are launching a new four-year option for High Value Mortgage loans,” he said.

“In addition, our new seven-year fixed rate will be attractive to customers availing of the High Value Mortgage and who would like the repayment certainty from a low long-term fixed rate.”

Haven Mortgages, AIB and Ulster Bank have all introduced green mortgages lately.

Some homeowners are switching mortgages to raise funds to improve the energy rating of their house. These people are ending up with lower monthly repayments thanks to new low-cost, green mortgage rates.

If the BER is set to become more favourable due to home improvement works, then lower green rates can mean that even when equity is released to pay for the works, the monthly repayment does not increase.

Research this year showed that more than half of households are considering home improvements, motivated by increasing the comfort and warmth of their homes.

Mortgage broker Michael Dowling said green mortgages are rising in popularity.

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