Retrofitting your home? Get a green mortgage for lower monthly payments
Go green, it makes financial sense: You can apply for a green mortgage to buy a new or second-hand home, or when you have completed a series of projects, typical of a deep-retrofit, leading to a sustainable, low-carbon property with a fully certified BER in the right range.
According to the Central Bank, what are termed green mortgages, now account for a third of all mortgages in Ireland.
What makes them distinct and outwardly “green” is not any direct sustainable performance from the lender, but the requirement for a certified, published BER attached to the property of A1 - B3 (secured from the SEAI over the past 10 years). They offer a discounted rate of interest on that provider’s standard fixed-rate, with a typical term of 4 or 5 years.
Together with principal and second homes, green mortgages can also be applied to investment properties to-let. The lending institution is demonstrating their confidence in the market for energy-efficient properties with that lower interest rate on the principle.
Green mortgages are aimed at new customers, existing customers, switchers and “topping-up clients” recalibrating their borrowings and future-proofing their homes. They can include properties in negative equity for those deemed eligible.
With a BER of A2 the legal minimum for new homes since 2019, an increasing number of properties coming on-stream will qualify.
You can apply for a green mortgage to buy a new or second-hand home, or when you have completed a series of projects, typical of a deep-retrofit, leading to a sustainable, low-carbon property with a fully certified BER in the right range.
This renovation work is typically paid for by combining savings with any of the personal and home-improvement loans available across the country from banks, buildings societies and credit unions. Self-builders can also apply for green mortgage rates.
Together with lower monthly payments, there are tempting bonuses taking up green and other current mortgage products.
EBS explains: “If you are a first-time buyer, mover, buying a holiday home, topping up on an existing mortgage, switching a mortgage to us, or moving to a different fixed rate, and the property is at least B3 rated, the EBS Green 4 Year Fixed Rate Mortgage is available to you. Receive €2000 cash if you’re a Switcher and drawdown on the EBS Green 4 Year Fixed Rate Mortgage,” it notes on ebs.ie.
Green mortgage products are currently available with AIB, Bank of Ireland, EBS, Haven, and Permanent TSB, and they should be considered alongside other low-interest non-green mortgage products.
The stipulations on how much you can borrow will depend (as with any mortgage application) on your means, income and other financial obligations. Check with the mortgage adviser at your current or potential lender or use the skills of an independent mortgage broker to see what fixed or variable rate product would best suit your situation.
