Bank of Ireland is introducing a new fixed rate mortgage product that will offer tiered discounts for homes that have a Building Energy Rating (BER) of any level.
Under the EcoSaver Mortgage, even homes with the lowest rating of G will be entitled to a smal discount on the standard fixed rate.
The product will be available both to new customers and existing customers moving to it and will be introduced on April 18th.
"The concept behind EcoSaver is simple – the more energy efficient your home becomes, the more your EcoSaver mortgage interest rate reduces. Almost three quarters of the housing stock in Ireland is BER C and lower," said Alan Hartley, Director of Homebuying, Bank of Ireland.
"Uniquely in the market, EcoSaver gives a range of tiered discounts for all properties with a BER, from A to G, a fairer situation for all homeowners."
"We haven't seen any other mortgage product from banks across Europe which provides discounts to such a range of properties."
The move comes amid some criticism that under their green mortgage, many banks are increasingly only offering discounted rates to those whose homes have the highest BERs.
For many homes these high ratings are unachievable without significant investment, which borrowers often cannot afford.
The Bank of Ireland EcoSaver Mortgage will offer tiered discounts from the standard fixed rates, depending on the BER.
These range from -0.35% for an A -rated property, down to -0.05% for a G-rated home.
If customers carry out work to their home that results in an improvement in its rating, they can get a larger discount.
However, the bank has pointed out that customers who are already on a fixed or tracker rate lower than what is currently on offer, even when the discount is factored in, may not benefit from moving product.
They may also face a cost for ending a fixed term early.
The banks is partnering with SSE Airtricity to provide a BER assessment to customers, as well as assessment of works needed, quotes and home retrofitting services.
"Our research shows that six in ten homeowners plan to retrofit their home at some stage in the future and one in ten already has," said Aine McCleary, Group Chief Customer Officer, Bank of Ireland.
"Savings made through EcoSaver rates will contribute to the cost of retrofitting a home, so our customers can save money and improve their homes."
"And for customers who aren’t currently in a position to invest in their homes, they can still benefit from an EcoSaver discount if they have any BER."
Yesterday, AIB announced it was reducing its Green Mortgage rates by 0.2%.
But that product is only available to borrowers with a home that has an energy rating of B3 or higher.
Separately, Bank of Ireland is also consolidating its Standard Variable Rate for owner occupiers to one single rate, with no differences for varying loan to value ratios.
The rate will be 4.15%, which is in line with the lowest rate it currently offers for any Standard Variable Rate LTV mortgage.
That change is also taking place from April 18th.
