EBS has joined AIB, Bank of Ireland and Haven in offering a green mortgage, with the lender launching with a super competitive four-year fixed rate of just 2.10%.
At a time when inflation is at record highs and the cost of living is soaring, it’s never been more important to save some money on your largest household bill, your mortgage.
One way consumers are doing just that is by switching to green mortgage products, which are becoming increasingly popular here…
Before we get into the specifics of the new product, here’s a recap.
Remind me, what is a green mortgage?
A green mortgage offers first-time buyers, movers and switchers a lower interest rate if their home has a high energy rating. In other words, if it’s more energy efficient.
Most lenders outline the specific criteria in order to be eligible but generally speaking you need to be buying a home with a Building Energy Rating (BER) of at least B3 or higher.
Find out everything you need to know with our guide to green mortgages here.
What is the new green mortgage rate?
EBS has launched its first ever green mortgage which offers customers a four-year fixed rate of 2.10%.
The new green rate is available to those whose homes have a Building Energy Rating (BER) of between A1 and B3.
Green mortgages are becoming increasingly popular with homeowners with green mortgage products now available from AIB, Bank of Ireland, Haven, and now EBS.
Competition is quite good at the moment too, with Haven recently reduced its own green mortgage rate to 2.0%.
Who can apply for the new rate with EBS?
The new rate is available to both new and existing customers, provided they satisfy the eligibility criteria from EBS.
As mentioned, to avail of the green rate your home has to have a BER of B3 or higher. Customers must also have a valid BER certificate that is no more than ten years old.
Also important to point out is that, similar to Haven, this new green mortgage rate from EBS is available regardless of a customer’s loan-to-value (LTV) ratio - so good news for first-time buyers who may only have a 10% deposit.
Paul Butler, Managing Director of EBS said:
We’re delighted to launch the first EBS Green Mortgage, which offers eligible customers monthly savings on their mortgage repayments for going green. Not only will customers save on their monthly mortgage repayments, but having an energy efficient home means they will also be making savings, all while doing their part for the environment.
How much can be saved with the new green rate?
According to EBS, mortgage holders currently on a standard variable rate of 3.70% would save €248.02 on their monthly repayments if they switched to its new green four-year fixed rate of 2.10%.
This represents an annual saving of up to €2,976 per year by going green with EBS, and based on a €300,000 mortgage over 25 years.
Any other important points to note?
Yes. Customers considering this new green rate should be aware that cashback is not available, unfortunately.
The 3% cashback or ‘Back in Cash’ offer from EBS is available on all its other rates, including its variable rate and its one, three and five-year fixed rates. However only until 24th August 2022. After this date, cashback will only be available to customers who choose either a three or five-year fixed rate.
In one of our mortgage guides we assess whether mortgage cashback offers are good value.
EBS in the news
EBS of course made the headlines for other reasons earlier in the year.
In January the lender confirmed that it's undertaking a strategic review of its operations, which could potentially see it stop offering savings products and current accounts.
The move would see EBS focus on selling mortgages instead, in what is still a highly competitive market despite both Ulster Bank and KBC leaving imminently.
Start your mortgage journey on bonkers.ie
Did you know that we now offer our own mortgage broker service?
By using our free mortgage calculator you can begin the first steps of your mortgage journey on bonkers.ie by comparing interest rates, mortgage offers and cashback incentives from all of Ireland’s mortgage lenders, including EBS.
When you’ve decided on a lender and rate that suits you best, you can then apply for your mortgage through us. What’s more, it’s completely free!
As well as that, our mortgage service is fully digital from start to finish, meaning everything can be carried out online from the comfort of your home.
What do you think?
Do you have a high BER? Would you consider taking out a green mortgage to avail of a cheaper rate? Or do you have any reservations? Let us know your thoughts in the comments below or get in touch with us on Facebook, Twitter or Instagram.