Understanding Green Mortgages: A Guide to Energy-Efficient Home Financing
What is a Green Mortgage?
A Green Mortgage offers a discount because your home is more energy efficient. These mortgages have been available for several years and are offered by the three main Irish banks: Bank of Ireland, AIB, and PTSB.
PTSB Green Mortgages
In March 2024, PTSB launched a new 3-year fixed rate green mortgage with rates ranging from 3.8% to 4.35%, depending on the mortgage amount and loan-to-value (LTV) ratio. This 3-year fixed rate is available only to new mortgage customers. PTSB also offers a 5-year fixed rate green mortgage, with rates ranging from 3.95% to 4.3%, depending on the loan size and LTV.
AIB Green Mortgages
AIB, along with its subsidiaries EBS and Haven, recently reduced their green mortgage rates. They now offer the lowest green fixed rate mortgage on the Irish market, starting at 3.45%. These green rates are available to first-time buyers, movers, and switchers, and are accessible to both new and existing customers.
Bank of Ireland Green Mortgages
Bank of Ireland, through its broker subsidiary BOI Mortgage Store, has introduced a new range of green discounted fixed rate mortgages. Their Echo Saver mortgage offers discounts from 0.35% for A-rated homes to 0.05% for G-rated homes.
Why Are Irish Mortgage Lenders Focused on Green Mortgages?
Having a high percentage of energy-efficient homes in their mortgage portfolios makes lenders more stable and robust. Energy-efficient homes are likely to maintain their value and be more economical for mortgage customers.
How Can You Qualify for a Green Mortgage?
To qualify for a green mortgage, you need a valid BER Certificate issued by a qualified BER assessor. The best discounts are available for homes with a BER rating of B3 or higher. However, Bank of Ireland now offers smaller discounts for homes with a BER rating as low as G.
Navigating Green Mortgage Options
The options and requirements for a green mortgage can be complex. A mortgage broker can assist you in understanding and navigating this process, making it simpler and more manageable.
Improving Your BER Rating
A qualified BER assessor can provide you with an energy rating and a list of improvements to boost your home’s BER rating, such as insulation, a better heating system, and upgraded windows. You can find a full list of registered BER assessors on the SEAI website.
Get in Touch
If you have questions about green mortgages or need help with a mortgage application, contact us. Our experienced MortgageLine Advisers are here to assist you.
