Bank of Ireland launches new green mortgage interest rate of 2%

If you’re on the hunt for a new home at the moment, or simply considering switching your mortgage to save some money on your monthly repayments, chances are you’ve come across green mortgages - especially if you’re purchasing an energy-efficient home.

Green mortgages provide some of the best value on the market right now for those buying a home with a high Building Energy Rating (BER) and are seemingly all the rage...

So much so that Bank of Ireland has just announced considerable reductions to its green mortgage offering, as well as launching a new four-year green rate of just 2% for high-value mortgages.

Here’s the latest!

What’s new?

Bank of Ireland has launched a brand new green, four-year fixed-rate mortgage with an interest rate of 2%.

The new highly competitive rate will be available to new customers who meet the relevant criteria from 26th October.

The bank has also introduced a new green, seven-year fixed rate with a slightly higher rate of 2.25%.

No cashback is available with any of the new loans. 

So, what do you need to apply?

Criteria for eligibility

The new 2% green rate is a high-value rate, meaning you must be taking out a mortgage of ​​€300,000 or more. The same applies for its green seven-year fixed rate. 

Also, and importantly, because it’s a green mortgage your home must have a BER between B3 and A1 to be eligible. You may also be building or upgrading a home to give it a BER of between B3 and A1.

What else is new?

As well as its new green mortgage rates, the bank has also announced reductions across its range of existing green fixed rates.

The bank now offers an increased discount of 0.30% - up from its previous 0.20% discount.

The bigger discount will apply to its fixed rates over one, two, three, five and 10-years.

Bank of Ireland's 3% cashback deal will continue to apply to these rates.

Similar to its new high-value offering above, ​​the new rates will be available to new customers from 26th October.

Here’s a look at what the new rates look like.

Criteria for eligibility

Again, because the above are green mortgage rates you must be buying a property with a BER between B3 and A1, or building or upgrading a home to give it a BER of between B3 and A1.

Applicants must also satisfy the Loan To Value (LTV) requirements as outlined in the table above.

Alan Hartley, Director of Home Buying at Bank of Ireland had this to say about the launch of its new green rates:

We all have a responsibility and a role to play in supporting energy efficiency. In 2019 Bank of Ireland launched our Sustainable Finance Fund and Ireland’s first green mortgage because our customers want tangible support in moving towards a low carbon future. 

Today we are pleased to be able to offer even better value across our green mortgage range and we are launching a new 4-year option for High Value Mortgage loans. In addition, our new 7-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.

What we say

Bank of Ireland’s new 2% green mortgage rate is now one of the most competitive green mortgage rates on the market for first-time buyers, switchers, and movers alike.

Green mortgage offerings have become very popular in recent years, with AIB, Haven Mortgages, and Ulster Bank now all offering green mortgages.

That being said, for those looking to take advantage of Bank of Ireland’s four-year green fixed you must be borrowing €300,000 or more, which could very well rule out a lot of first-time buyers, not to mention there is no cashback on offer.

However, if you are eligible to apply, or if you’re switching to BOI, you may well be able to avail of far lower monthly repayments.

Apply for a mortgage today through bonkers.ie

At bonkers.ie we recently launched our new mortgage broker service.

First-time buyers, movers and switchers can now apply for their mortgage through Ireland’s favourite comparison and switching website and deal with us throughout their entire mortgage journey. 

Simply use our free mortgage calculator here to get started and compare interest rates, mortgage offers and cashback incentives from all of Ireland’s mortgage lenders, including Bank of Ireland. 

When the time comes to apply for your mortgage, you’ll also need mortgage protection insurance too, but don’t worry we’ve also got you covered there too! 

You can compare mortgage protection premiums with our easy-to-use comparison tool and view quotes and benefits from Ireland’s main insurance providers in just a few clicks. You could even get cover in under an hour!

Check out our mortgage guides

If you’re considering applying for a mortgage and are seeking more information, make sure you take a look at some of our helpful guides:

• Before applying, you’ll want to familiarise yourself with the Central Bank’s mortgage lending rules.
• More people are opting for fixed rates over variable rates, however it’s important to know the pros and cons of both so that you can make an informed decision.
• You can learn about how mortgage applications are assessed in this guide.

Don’t forget that you can stay up to date with all of the latest mortgage news and top tips with our blogs and guides.

Get in touch

What do you think of the latest news from Bank of Ireland? Would you consider a green mortgage loan if it meant cheaper monthly repayments?

Let us know in the comments below or reach out to us on social media. We’re on Facebook, Twitter and Instagram.