Bank of Ireland introduces EcoSaver: Discounted mortgages for green homes

James

Eco
Central Bank of Ireland, tags: ecosaver - CC BY-SA

Bank of Ireland has taken a significant step towards promoting environmental responsibility within the financial industry by introducing the EcoSaver Mortgage. This groundbreaking initiative provides homeowners with discounted fixed interest rates based on their property’s Building Energy Rating (BER).

The program’s unique tiered structure comprises five pricing options ranging from A to G, which incentivizes homeowners to adopt energy-efficient practices and aligns with Ireland’s broader climate objectives. By offering this innovative product, Bank of Ireland is not only encouraging sustainability but also empowering homeowners to make a positive impact on the environment.

How EcoSaver Mortgage Works

The Green Mortgage program is a great opportunity for homeowners to reduce their borrowing costs while also contributing to a more sustainable future. To be eligible for this program, homes must have a minimum Building Energy Rating (BER) of B3. This ensures that the properties meet certain energy efficiency standards and are environmentally friendly.

If you’re interested in this program, you’ll be pleased to know that there are EcoSaver discounts available to help you save even more money. The amount of discount you receive is based on your property’s BER rating, ranging from 0.05% for G-rated homes to an impressive 0.35% for A-rated properties.

Savings made through EcoSaver rates will contribute to the cost of retrofitting a home, so our customers can save money and improve their homes.

Aine McCleary, Strategic Banking Executive at Bank of Ireland

It’s worth noting that this program is open to both new customers and existing Bank of Ireland mortgage holders who are interested in switching. Additionally, homeowners have the opportunity to unlock even larger discounts by improving their property’s BER. So, not only can you save money on your mortgage, but you can also make an impact on the environment by improving your home’s energy efficiency.

Potential Impact and Considerations

There are concerns among some industry experts regarding the potential consequences of new BER (Building Energy Rating) requirements for buyers, which could result in increased debt. However, the Bank of Ireland is fully committed to sustainable practices and has taken clear steps to achieve this.

The bank’s EcoSaver Mortgage program is designed to support its goal of reducing the carbon emissions of its mortgage book by 50% by 2030. To assist homeowners in reaching this target, the bank provides a range of resources aimed at guiding energy efficiency upgrades, as well as providing access to qualified contractors.

Options for Homeowners

Existing fixed-rate mortgage holders have several choices. They can wait until their current term ends, consider breaking their contract to switch to EcoSaver (carefully weighing potential fees), or potentially renegotiate their rates with their lender.

Those on non-fixed-rate mortgages can switch to the EcoSaver Mortgage and secure a discounted fixed rate at any time. Customers are encouraged to contact the Bank of Ireland directly for personalized advice and to begin the application process.

Driving Positive Change

The EcoSaver Mortgage has the potential to significantly impact Ireland’s housing sector, where over 75% of homes have a low BER rating. By reinvesting the savings from discounted rates, homeowners can finance energy-saving retrofits – improving their living spaces while reducing energy bills and carbon footprints.

This initiative demonstrates the Bank of Ireland’s proactive approach to sustainable lending, incentivizing homeowners to make environmentally conscious choices while offering financial benefits.

A Growing Trend

As the world grapples with the daunting challenge of climate change, financial institutions like the Bank of Ireland are taking an important step forward by offering green mortgage discounts.

This move towards more eco-friendly lending practices is crucial, as it helps reduce carbon emissions and promote a more sustainable future for all. By encouraging and incentivizing environmentally conscious behavior, the Bank of Ireland is playing a vital role in the global effort to combat climate change and preserve our planet for generations to come.

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