Bank of Ireland cut interest rates on a series of green mortgages and launched a new rate of 2pc, the lowest.
reen mortgages are now offered by a number of lenders and the rates are lower than the rates of conventional home loans.
All new homes are eligible for these mortgages because they are built to high energy efficiency standards.
Bank of Ireland increased the discount on green mortgages from 0.2% to 0.3%.
The largest discount will apply to the fixed terms of one, two, three, five and 10 years.
It has also launched a very competitive fixed green rate of 2pc over four years for borrowers borrowing € 300,000 or more. Rates will apply to new customers meeting the criteria as of Tuesday, October 26.
The green discount is available for the purchase of real estate with a BER (Building Energy Rating) between B3 and A1, or the construction or modernization of a house to give it a BER between B3 and A1.
Bank of Ireland’s new high value fixed rate green offer is set at 2% for four fixed years and 2.25% for those fixing for seven years.
These apply to those who borrow $ 300,000 or more, and there is no cash back on these home loans.
Bank of Ireland home buying director Alan Hartley said the lender recognizes it has a responsibility and a role to play in supporting energy efficiency.
“We are excited to be able to offer even better value through our line of green mortgages and are launching a new four year option for high value mortgages,” he said.
“In addition, our new seven-year fixed rate will be attractive to high-value mortgage clients who want the repayment certainty of a long-term low fixed rate. “
Haven Mortgages, AIB and Ulster Bank have all recently introduced green mortgages.
Some homeowners switch mortgages to raise funds to improve their home’s energy rating. These people end up with lower monthly repayments thanks to the new low-cost green mortgage rates.
If the BER is set to become more favorable due to home improvement work, lower green rates can mean that even when equity is released to pay for the work, the monthly repayment does not increase.
This year’s research has shown that more than half of households are considering upgrading their homes, motivated by increasing the comfort and warmth of their homes.
Mortgage broker Michael Dowling said green mortgages are growing in popularity.