Save Money with a Green Mortgage
Kelly Ohlmus

Save Money with a Green Mortgage

Are you potentially missing out on an opportunity to reduce your interest rate? Discover how a Green Mortgage can help you save and energy-efficient upgrades that can lower your interest rate.

There has been a recent breakthrough in mortgage offerings that might have flown under the radar for many. While there has been significant discussion about banks universally increasing interest rates, many banks have chosen to keep rates on Green Mortgages unaffected.


What is a Green Mortgage?

Green Mortgages are housing loans designed for property owners who want to buy or refinance homes that meet a minimum rating of Building Energy Rating (BER) of B3 or better.

If you have a modern house built after 2019 or have made energy-efficient upgrades like installing a heat pump, solar panels, or extra insulation, you might qualify for a Green Mortgage.

Many Irish banks now offer green mortgages, allowing borrowers to finance or refinance their mortgages at a lower rate. This mortgage option promotes environmental sustainability and helps homeowners lower energy expenses while contributing to a greener future.

These mortgages are available at a significantly reduced cost. At the time of writing, AIB offers a 5-year Green fixed rate of 3.75%, which is notably lower than their Standard fixed rate of 4.8%. As a result, eligible borrowers could save nearly €9,000 over 5 years on a €250,000 mortgage. The difference between the green and standard rates has become substantial, making green mortgages an attractive choice for eligible individuals.


Qualifying for a Green Mortgage

To apply for a green mortgage, simply reach out to your bank and provide them with a minimum B3 Building Energy Rating (BER). This step will kickstart the application process. If you're staying with the same lender, you can bypass the need for a solicitor and avoid conveyancing fees.

In 2019, Ireland implemented updated energy efficiency regulations, requiring all newly constructed homes to meet A2 rating standards. This means that if you're purchasing a new build or undertaking self-build or extensive renovations (more than 25% of property surface area), you will automatically qualify for a green mortgage.


How your home's BER is calculated

The BER of your home is determined by assessing its energy requirements. This evaluation is carried out by a fully qualified BER Assessor who thoroughly inspects your home, taking note of details such as walls, flooring, windows, insulation, lighting, and heating system. By doing so, they provide a comprehensive overview of your property's current energy rating.

If you have already received a BER from such an inspection, you can submit it to your bank for consideration. However, if you haven't obtained a BER yet, you will need to schedule an inspection before applying for a green mortgage.

Get started on your energy-efficient home improvements with Onlinetradesmen. Post a job today!


How to improve a home's BER

If you're thinking of switching to a green mortgage and want to meet the BER requirements, there are two crucial changes you can make to enhance the energy efficiency of your home. First, focus on reducing heat loss, which is key in conserving energy. Second, consider installing an efficient heating system to further improve energy consumption.

You can make these upgrades yourself or post a job to find a qualified professional. Increasing the energy efficiency of your home is a great investment that will pay for itself in energy savings over time.

These improvements will not only improve BER but lower your utility bills while increasing comfort in your home.

  • Upgrade wall, floor and attic insulation. A variety of options are available including external wall, cavity wall and foam. Read tips for insulating your home.
  • Replacing older windows and doors with double-glazed units that are sealed to prevent air leaks.
  • Install energy-efficient lighting such as LED bulbs and fixtures.
  • Invest in a more efficient heating system like a heat pump which can provide hot water and warm your home while using less energy than conventional systems.
  • Install solar PV system.

Taking the time to make these energy-efficient upgrades can be a huge benefit when applying for a green mortgage. Not only can you reduce your monthly payments, but you will also save money in the long run and contribute to a greener future.

If you're looking for a way to save on your mortgage costs, a Green Mortgage may be the perfect fit. To learn more about this cost-saving opportunity and see if you qualify, contact your lender today. Get free quotes and find qualified professionals to improve your home's energy efficiency with Onlinetradesmen. Post a job today!

Read more Home Energy Upgrade Solutions & Financial Supports.

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