The Bank of Ireland is revising its green mortgage range to extend discounts to customers who own homes of varying energy efficiency levels, from A to G. The new ‘ecosaver’ mortgage, replacing the current green mortgage plan, will be available from April 18th to both new and current customers shifting from a different Bank of Ireland product, according to Tuesday’s statement.
A home with an ‘A’ Building Energy Rating (BER) will earn customers a 0.35 percentage point discount on their fixed-rate loan, with the discount decreasing to 0.3 points for ‘B’ rated properties and 0.05 for ‘G’ rated ones.
The fixed rates for a five year period for properties with up to 80% mortgage are presently 4.15% for existing clients and 4.75% for new mortgage applicants. Alan Hartley, Bank of Ireland’s director of homebuying, stated that homeowners could benefit further from the EcoSaver mortgage as their homes become more energy efficient.
Bank of Ireland’s study reveals that 60% of homeowners intend to improve their home’s energy efficiency in the future and that 10% have already done so. This move aligns with increased focus on environmentally-conscious lending, as regulators and specific investor groups pressurise banks globally towards sustainability.
Bank of Ireland plans to increase its balance sheet from €8 billion in 2022 to €30 billion by the end of 2030 through sustainability-related lending. According to Aine McCleary, chief customer officer with Bank of Ireland, the savings from EcoSaver rates will help clients retrofit their homes, saving money while enhancing their properties.
For consumers who may not have the financial ability to invest in their homes presently, a cost reduction is available through EcoSaver if they possess any BER.
Present customers have various approaches to acquire an EcoSaver mortgage. Those who are on a fixed-interest rate plan can choose to transition when their existing rate comes to an end, or decide to terminate their ongoing fixed-interest rate to switch. However, there might not be any financial savings if they are already on a cheaper fixed rate than the one currently provided by Bank of Ireland.
The bank also indicated that a termination fee may be applicable for early exit from a fixed-rate term. Moreover, customers on non-fixed-rate plans have the liberty to opt for a fixed-rate term whenever they wish.