Bank of Ireland is set to reduce its green mortgage interest rates, and will offer a new rate of 2% to eligible customers.

The green rates are available to those purchasing homes with a Building Energy Rating (BER) of B3 or better.

For green mortgages, the bank will now offer a discount of 0.3% on its standard mortgage loan rates over one, two, three, five and ten year fixed terms.

This discount was previously 0.2%.

For high value mortgages of €300,000 or more, Bank of Ireland has introduced two new fixed-rate options - a four-year rate of 2.30% and a seven-year rate of 2.55%.

The green mortgage discount of 0.30% is also available with these fixed rate options, which would result in a four-year green mortgage rate of 2% and a seven-year green mortgage rate of 2.25%.

The bank said all of the rates announced today will be available to new customers from next Tuesday 26 October.

"We all have a responsibility and a role to play in supporting energy efficiency," said Alan Hartley, Director of Home Buying at Bank of Ireland.

"In 2019 Bank of Ireland launched our Sustainable Finance Fund and Ireland's first green mortgage because our customers want tangible support in moving towards a low carbon future.

"Today we are pleased to be able to offer even better value across our green mortgage range and we are launching a new four-year option for high value mortgage loans," he said.