So called Green Mortgages are now available at very low rates from most major lenders, but recently Bank of Ireland announced the lowest yet at just 2%. So who can qualify and is it worth it?
New homes
Major lenders have recognised their role in aiding our shift towards a carbon neutral society and as such have provided incentive for those seeking to borrow to go green. All new homes will qualify for the new Bank of Ireland 2% rate as they naturally will be built to high energy standards.
The bank has also launched a 2% four-year fixed green rate for those borrowing €300,000 or more. These new rates will come into effect on the 26th October this year, for new customers that qualify.
In order to meet the criteria, the property must have a BER (Building Energy Rating) between B3 and A1, or by way of renovation/upgrades will have a BER of between B3 and A1.
Is It Worth It?
Many have already opted for Green mortgages as they seek to invest in energy efficient properties or simply look to improve their current home. Research from this year indicates that more than 50% of Irish households intend to upgrade or improve their homes.
Green mortgages offered by a variety of lenders such as AIB, Ulster Bank and Bank of Ireland have already helped many investors and homeowners alike to reduce their monthly outgoings due to new lower repayment rates. As an investor, anything to help reduce your outgoings is definitely worth looking at.
One thing is for sure, it’s going to become more and more important that our properties are energy efficient. The current energy supply situation is testament to the fact that prices will never go down. Indeed sharp rises in fuel and electricity costs are expected to continue over the coming years. By seeking out the best deal for you now that enables you to either invest in or upgrade property to a high energy rating, you will inevitably save money in the long term.
If you are an investor or property owner seeking advice on property management then please do not hesitate to get in touch with KPM Group today. We have over 25 years experience in property management in Ireland and would be happy to help in any way we can.
