Are you nearing the end of your fixed-rate mortgage; embarking on your first home purchase or looking to enhance your home's energy efficiency? Now may be the right time to explore the green mortgage options available in the market.

Green mortgages, introduced in 2019, have become increasingly popular. Studies show a growing appetite for these lower rate mortgages among first time buyers and mortgage switchers. And with larger numbers of homeowners undertaking home improvements to upgrade their Building Energy Rating (BER), it is evident that green mortgages will continue to grow in popularity.

Many lenders offer competitive green rates, often boasting the best fixed rates in the market. This makes them appealing not only to environmentally conscious individuals but also those seeking financial savings.

Similar to standard mortgages, green mortgages involve borrowing money for a home purchase or home improvements and repaying through monthly instalments and interest. The key distinction lies in the fact that green mortgages include a discount off the lender's standard rate, resulting in cost savings. However, thorough rate comparison is crucial, as the best option available to you may not always be a green mortgage - for example, some lenders offer competitive rates for low loan-to-value ratios.

In Ireland, five lenders provide green mortgages, i.e. Haven, Bank of Ireland, EBS, PTSB and AIB. The rates currently available are:

Lender	Name of Mortgage	Interest Rate
Haven	Green 4 Year Fixed Rate	From 3.65%
Bank of Ireland	Green Mortgage (1 – 10 Years)	Discount 0.30%
EBS	Green 4 Year Fixed Rate	From 3.75%
PTSB	Green 5 Year Fixed Home Loan	From 3.95%
AIB	Green 5 Year Fixed Rate	From 4.65%

 

Aside from cost savings, green mortgages offer additional advantages, such as enhanced home resale potential due to energy efficiency, contributing to environmental sustainability, and reducing carbon footprint, along with savings on mortgage expenses and lower energy costs.

With the potential for financial gains through reduced interest rates and energy bills, green mortgages present a compelling opportunity for current and prospective homeowners. When considering applying for or switching to a green mortgage, contact us. We will conduct thorough research on your behalf and guide you through the mortgage application process.