Green Mortgages in Ireland
Green Mortgages in Ireland
At a time when people are grappling with the impact of inflation and the cost of living crisis, it makes sense to cut back on household bills. With this in mind, mortgage repayments are the biggest expense for most homeowners in Ireland which is why switching to a green mortgage can be a shrewd decision.
But what is a green mortgage exactly? In this article, we take a look at what you should know about green mortgages and why switching to a green mortgage product can save you money.
Green Mortgages or
Lower Interest Rates for
“Green Buildings”
‘Green mortgage’ refers to a type of mortgage for buildings that meet a specific criteria for environmental standards. This type of mortgage offers terms which include a lower rate of interest or an increased loan amount to the borrower.
Green mortgages were first established to finance renovations for green buildings in Europe. This initiative was expanded to support sustainable development and then offered to homeowners and first-time buyers in the form of green mortgage products. The definition of ‘Green building’ depends on the Building Energy Rating (BER) which essentially rates the energy efficiency of a building between A and G with A-rated buildings being the most efficient.
This means that in order to qualify for a green mortgage, you need to be borrowing against either a new build or second-hand property that meets the minimum BER requirement of B3 or higher. Borrowers must produce a BER certificate in this respect which is no more than 10 years old and then satisfy other lender requirements as part of a green mortgage application.
It might be worth noting that banks are increasingly receptive to applicants with the appropriate BER certificate because the incentive works both ways…
Green Mortgages or
Lower Interest Rates for
“Green Buildings”
‘Green mortgage’ refers to a type of mortgage for buildings that meet a specific criteria for environmental standards. This type of mortgage offers terms which include a lower rate of interest or an increased loan amount to the borrower.
Green mortgages were first established to finance renovations for green buildings in Europe. This initiative was expanded to support sustainable development and then offered to homeowners and first-time buyers in the form of green mortgage products. The definition of ‘Green building’ depends on the Building Energy Rating (BER) which essentially rates the energy efficiency of a building between A and G with A-rated buildings being the most efficient.
This means that in order to qualify for a green mortgage, you need to be borrowing against either a new build or second-hand property that meets the minimum BER requirement of B3 or higher. Borrowers must produce a BER certificate in this respect which is no more than 10 years old and then satisfy other lender requirements as part of a green mortgage application.
It might be worth noting that banks are increasingly receptive to applicants with the appropriate BER certificate because the incentive works both ways…
About Green Mortgage Products
in Ireland
Green mortgage products are increasingly common in Ireland and currently available to buyers, movers and switchers at Bank of Ireland, AIB, EBS and Haven. While they offer clear financial benefits to borrowers, you might be asking yourself “what’s in it for the banks“? Well, quite a lot actually.
Green mortgages are good for public relations and great for the environment. This initiative puts the topic of sustainability in the mind of homeowners and aligns with climate change commitments in the Paris Agreement that pledge to increase the percentage of energy efficient buildings. But that’s not all because the ‘loan to value’ ratio is much more favourable for energy efficient buildings.
Studies show there is less risk involved for banks when it comes to borrowing against a green building. This is because green buildings are perceived to have more value over time than a building without a high BER rating and the borrower of an energy efficient building is also likely to be in a better financial position to make repayments in the future.
Simply put, green mortgages make sense for both parties and there is no apparent downside to the arrangement. However, the uptake on green mortgage products is still rather slow.
The Financial Benefit of ‘Going Green’ in Ireland
It’s true, some borrower’s are not yet convinced. In spite of the financial incentives, going green requires up-front investment and the sales pitch for green mortgage products is somewhat lacking. That is to say, the banks are still trying to figure out how to make the green renovation more attractive and to remove this sense of doubt by ‘normalising’ green mortgage products.
There is also the fact that many homeowners in Ireland have yet to consider switching to a better deal with an alternative mortgage provider. It’s possible to find these deals with a mortgage comparison tool but both the benefits and ease of switching mortgages is probably not as well-known as it could be.
It will take time for buyers and homeowners to catch on but borrower’s will eventually realise the financial benefit of a green mortgage and the savings one can make in the long term. After all, why pay more for your mortgage repayments when you can pay less? It’s an obvious way to save money.
There is a substantial increase in savings:
There is a large difference in the savings: Bank of Ireland currently offers a fixed rate of 3.6% over a 5 year term. The green mortgage rate for the same amount is just 3.6% which can potentially save you hundreds every month. It might not seem like much at first but over the course of a 5-year term, you can save thousands – all in the name of switching to a green mortgage product
The above is just an example but you can compare offers on Switcheroo which features all of the green mortgage products currently available in Ireland.
Final Thoughts: Is a Green Mortgage Right for You?
If you can afford to renovate a green building or purchase a home with a high Building Energy Rating, you should consider switching to a green mortgage. Once again, it might not seem like a lot at first glance but these savings add up over time and certainly make a difference over the term of a mortgage.
At the same time, it’s important to compare other types of mortgage products because it’s sometimes possible to find a better non-green rate depending on the amount you borrow. You might also want a longer term than 10-years or the cash back which some people like to use to cover mortgage fees or perhaps costs associated with moving home. Either way, a green mortgage might just be the best way to reduce your mortgage repayments and you should at least compare mortgage products today to make sure you’re getting the best deal.
About Green Mortgage Products
in Ireland
Green mortgage products are increasingly common in Ireland and currently available to buyers, movers and switchers at Bank of Ireland, AIB, EBS and Haven. While they offer clear financial benefits to borrowers, you might be asking yourself “what’s in it for the banks“? Well, quite a lot actually.
Green mortgages are good for public relations and great for the environment. This initiative puts the topic of sustainability in the mind of homeowners and aligns with climate change commitments in the Paris Agreement that pledge to increase the percentage of energy efficient buildings. But that’s not all because the ‘loan to value’ ratio is much more favourable for energy efficient buildings.
Studies show there is less risk involved for banks when it comes to borrowing against a green building. This is because green buildings are perceived to have more value over time than a building without a high BER rating and the borrower of an energy efficient building is also likely to be in a better financial position to make repayments in the future.
Simply put, green mortgages make sense for both parties and there is no apparent downside to the arrangement. However, the uptake on green mortgage products is still rather slow.
The Financial Benefit of ‘Going Green’ in Ireland
It’s true, some borrower’s are not yet convinced. In spite of the financial incentives, going green requires up-front investment and the sales pitch for green mortgage products is somewhat lacking. That is to say, the banks are still trying to figure out how to make the green renovation more attractive and to remove this sense of doubt by ‘normalising’ green mortgage products.
There is also the fact that many homeowners in Ireland have yet to consider switching to a better deal with an alternative mortgage provider. It’s possible to find these deals with a mortgage comparison tool but both the benefits and ease of switching mortgages is probably not as well-known as it could be.
It will take time for buyers and homeowners to catch on but borrower’s will eventually realise the financial benefit of a green mortgage and the savings one can make in the long term. After all, why pay more for your mortgage repayments when you can pay less? It’s an obvious way to save money.
There is a substantial increase in savings:
There is a large difference in the savings: Bank of Ireland currently offers a fixed rate of 3.6% over a 5 year term. The green mortgage rate for the same amount is just 3.6% which can potentially save you hundreds every month. It might not seem like much at first but over the course of a 5-year term, you can save thousands – all in the name of switching to a green mortgage product
The above is just an example but you can compare offers on Switcheroo which features all of the green mortgage products currently available in Ireland.
Final Thoughts: Is a Green Mortgage Right for You?
If you can afford to renovate a green building or purchase a home with a high Building Energy Rating, you should consider switching to a green mortgage. Once again, it might not seem like a lot at first glance but these savings add up over time and certainly make a difference over the term of a mortgage.
At the same time, it’s important to compare other types of mortgage products because it’s sometimes possible to find a better non-green rate depending on the amount you borrow. You might also want a longer term than 10-years or the cash back which some people like to use to cover mortgage fees or perhaps costs associated with moving home. Either way, a green mortgage might just be the best way to reduce your mortgage repayments and you should at least compare mortgage products today to make sure you’re getting the best deal.
HAVE QUESTIONS
Read our FAQ
You're called Switcheroo.ie but do you help First Time Buyers and Home movers?
Yes, we absolutely do. As long as you are looking to buy a residential property we stand ready to help. We like the name Switcheroo as you are switching home if you are a mover and even if you are a buyer you are switching from tenant to homeowner!!!
What’s the best mortgage I can get?
That’s a question we hear a lot but there is no simple answer to this. There are a number of factors to this which both you and we need to consider when you are thinking of getting a mortgage.
Mortgages come with different terms and banks use different criteria to establish who they lend to, how much and at what rate. Don’t stress too much! You can find out pretty quickly to see if it’s worth your while. From there we will guide you through the process and make sure you get the right mortgage for you and make the process as simple as possible.
If I am a switcher how much can I save?
The Central Bank of Ireland published research that showed that many existing mortgage holders can save over €10,000 euros by switching their mortgage. It will depend on your specific circumstances but just 20 seconds on our calculator will show you what its worth for you to switcheroo.
What documents will you need from me?
Initially, none. The first step is for you to take our Financial Health Check in your secure customer portal. This will help us understand your circumstances and see if you are mortgage fit but we don’t need documentation at that stage. Only later when we move on to preparing your submission to a lender, will we need to make sure that your information is accurate, and we’ll need documentation from you then. Those include proof of your identity, income, utility bills with proof of address, as well as things like visa status where it applies. We’ll always make it clear exactly what we need and why.
Do you perform credit checks?
Our job is to make sure that you have the best possible chance of being accepted. So, we perform our own affordability check before sending anything to a lender. This leaves no footprint on your credit history.
I want to switcheroo, what’s next?
On our website there are calculators that will help you figure out what you can save or what your mortgage would cost. From there you’ll need to register into your customer portal so we can perform a Financial Health Check on you to assess what you can afford.
If all is well, we will then ask for more details on your current circumstances and the specifics of the house you want to mortgage.
Usually, this shouldn’t take more than 60 minutes, and you’ll be one step closer to a mortgage. At this point, you can have a phone call with one of our mortgage experts. They will answer any questions you have and tell you exactly what documents you’re going to need. From there, the expert team will guide you through the application process and keep you updated on progress. You can check progress online and we will keep you updated along the way.
What does Switcheroo.ie do with my data?
It’s all explained in our privacy policy, but basically: we won’t spam you and we won’t pass on your data to other companies so that they can spam you. We hate that.
How does Switcheroo.ie make money?
Yep, we don’t charge any commission. If you get a mortgage using Switcheroo.ie, the lender you use pays us a commission. Some intermediaries charge you an additional commission but not us, we are free forever. These commission never affect our advice. Our reputation and livelihood depend on us always giving our customers the best possible advice. The important bit is we’ll never charge you a penny.
HAVE QUESTIONS
Read our FAQ
You're called Switcheroo.ie but do you help First Time Buyers and Home movers?
Yes, we absolutely do. As long as you are looking to buy a residential property we stand ready to help. We like the name Switcheroo as you are switching home if you are a mover and even if you are a buyer you are switching from tenant to homeowner!!!
What’s the best mortgage I can get?
That’s a question we hear a lot but there is no simple answer to this. There are a number of factors to this which both you and we need to consider when you are thinking of getting a mortgage.
Mortgages come with different terms and banks use different criteria to establish who they lend to, how much and at what rate. Don’t stress too much! You can find out pretty quickly to see if it’s worth your while. From there we will guide you through the process and make sure you get the right mortgage for you and make the process as simple as possible.
If I am a switcher how much can I save?
The Central Bank of Ireland published research that showed that many existing mortgage holders can save over €10,000 euros by switching their mortgage. It will depend on your specific circumstances but just 20 seconds on our calculator will show you what its worth for you to switcheroo.
What documents will you need from me?
Initially, none. The first step is for you to take our Financial Health Check in your secure customer portal. This will help us understand your circumstances and see if you are mortgage fit but we don’t need documentation at that stage. Only later when we move on to preparing your submission to a lender, will we need to make sure that your information is accurate, and we’ll need documentation from you then. Those include proof of your identity, income, utility bills with proof of address, as well as things like visa status where it applies. We’ll always make it clear exactly what we need and why.
Do you perform credit checks?
Our job is to make sure that you have the best possible chance of being accepted. So, we perform our own affordability check before sending anything to a lender. This leaves no footprint on your credit history.
I want to switcheroo, what’s next?
On our website there are calculators that will help you figure out what you can save or what your mortgage would cost. From there you’ll need to register into your customer portal so we can perform a Financial Health Check on you to assess what you can afford.
If all is well, we will then ask for more details on your current circumstances and the specifics of the house you want to mortgage.
Usually, this shouldn’t take more than 60 minutes, and you’ll be one step closer to a mortgage. At this point, you can have a phone call with one of our mortgage experts. They will answer any questions you have and tell you exactly what documents you’re going to need. From there, the expert team will guide you through the application process and keep you updated on progress. You can check progress online and we will keep you updated along the way.
What does Switcheroo.ie do with my data?
It’s all explained in our privacy policy, but basically: we won’t spam you and we won’t pass on your data to other companies so that they can spam you. We hate that.
How does Switcheroo.ie make money?
Yep, we don’t charge any commission. If you get a mortgage using Switcheroo.ie, the lender you use pays us a commission. Some intermediaries charge you an additional commission but not us, we are free forever. These commission never affect our advice. Our reputation and livelihood depend on us always giving our customers the best possible advice. The important bit is we’ll never charge you a penny.
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to
support you through your application
Don’t take our word for it, read what our customers think of us
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to
support you through your application
Don’t take our word for it, read what our customers think of us
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to support you through your application
Don’t take our word for it, read what our customers think of us
Really happy with the advice and service provided by Switcheroo!! I was looking to switch to a better rate which they helped me with and having gone through this I will save thousands off the cost of my mortgage, and there are no charges for Switcheroo’s service. Definitely would recommend them and will come back to them when my fixed term ends.
Jairo
Switcher – CORK
Switcheroo people helped us through the process of the purchase of our new home, they have been extremely professional and very helping throughout all the phases, and even when the timeframe was tight for use they have been able to put us through the final stages. We couldn’t recommend anything better than their service, and if we ever need another mortgage we will know where to reach first.
Connie Robertson
Switcher – Galway
We would highly recommend working with this team! The online portal made everything really straightforward, and, in the end, we knocked 6 years off the term of our mortgage thanks to the great rate they secured for us
Ciaran and Denise
Switchers – Dublin
Switching our mortgage with Dylan as our agent has saved us thousands of euros. Dylan’s attention to detail, prompt replies, regular contact and friendly professionalism enabled us to negotiate our way through the process.
Kathleen
Switcher – Wexford
Very happy with our switching process with Alison from Switcheroo, everything carried out in a quick efficient manner. Even when additional information was required everything was handled very smoothly. Would highly recommend to anyone considering switching
Janice
Switcher – kildare
We switched our mortgage with Alison who helped us through the process step by step very efficiently. They have been very helpful, efficient and are excellent at their work. We saved thousands and I would recommend their services to anyone.
Niall
Switcher – Wicklow
Alison and the Switcheroo team were a great help in assisting us process our mortgage. Instead of having to deal with different customer service officials within the bank we had one point of contact in Switcheroo who kept us updated and kept the process moving.
Susan
First Time Buyer – Dublin
Switcheroo and especially Alison made the whole process as painless as possible. Her diligence and help in explaining and guiding us through the process was invaluable. I would have no hesitation in recommending Switcheroo
Gary and MJ
Switchers – Dublin
Alison and her team made a very daunting task of switching mortgage into something stress free. She supported us entirely throughout the whole process, and her advice was clear, concise and professional. We would have no issue recommending Alison and her team.
Andrea and Ian
Switchers – Meath
As first time home buyers, we found the online process of securing a mortgage very straightforward. It was easy to upload the documents and they responded to any queries we had immediately. We would definitely recommend them and will be using them again when the time comes to switch after the fixed rate expires.
Michael and Kate
First Time Buyers – Meath
We would highly recommend using the Switcheroo Team! The online portal made everything really transparent and straightforward. The team in Switcheroo successfully helped us get credit approval after we were turned down by another bank due to a minor credit issue. Luke and Dylan were so helpful and communication was brilliant.
Cannot thank the team in Switcheroo enough. We are now owners of our dream home.
Karen and Shane
Movers – Dublin
Switcheroo helps us switch our mortgage to a cheaper rate. I have to say that both Luke and Dylan were brilliant, they were the best that I have worked with in any financial institution! They were so prompt and pro active with any query I had and Dylan’s help over the last 2 weeks to hit our target date of today was exceptional. I got several updates per day and even when I called him on his day off, I got a text back within minutes. I will definitely be recommending to my family, friends and work colleagues to look at switching their mortgage with this team
Mark
Switchers – Galway
Really happy with the advice and service provided by Switcheroo!! I was looking to switch to a better rate which they helped me with and having gone through this I will save thousands off the cost of my mortgage, and there are no charges for Switcheroo’s service. Definitely would recommend them and will come back to them when my fixed term ends.
Jairo
Switcher – CORK
Switcheroo people helped us through the process of the purchase of our new home, they have been extremely professional and very helping throughout all the phases, and even when the timeframe was tight for use they have been able to put us through the final stages. We couldn’t recommend anything better than their service, and if we ever need another mortgage we will know where to reach first.
Connie Robertson
Switcher – Galway
We would highly recommend working with this team! The online portal made everything really straightforward, and, in the end, we knocked 6 years off the term of our mortgage thanks to the great rate they secured for us
Ciaran and Denise
Switchers – Dublin
Switching our mortgage with Dylan as our agent has saved us thousands of euros. Dylan’s attention to detail, prompt replies, regular contact and friendly professionalism enabled us to negotiate our way through the process.
Kathleen
Switcher – Wexford
Very happy with our switching process with Alison from Switcheroo, everything carried out in a quick efficient manner. Even when additional information was required everything was handled very smoothly. Would highly recommend to anyone considering switching
Janice
Switcher – kildare
We switched our mortgage with Alison who helped us through the process step by step very efficiently. They have been very helpful, efficient and are excellent at their work. We saved thousands and I would recommend their services to anyone.
Niall
Switcher – Wicklow
Alison and the Switcheroo team were a great help in assisting us process our mortgage. Instead of having to deal with different customer service officials within the bank we had one point of contact in Switcheroo who kept us updated and kept the process moving.
Susan
First Time Buyer – Dublin
Switcheroo and especially Alison made the whole process as painless as possible. Her diligence and help in explaining and guiding us through the process was invaluable. I would have no hesitation in recommending Switcheroo
Gary and MJ
Switchers – Dublin
Alison and her team made a very daunting task of switching mortgage into something stress free. She supported us entirely throughout the whole process, and her advice was clear, concise and professional. We would have no issue recommending Alison and her team.
Andrea and Ian
Switchers – Meath
As first time home buyers, we found the online process of securing a mortgage very straightforward. It was easy to upload the documents and they responded to any queries we had immediately. We would definitely recommend them and will be using them again when the time comes to switch after the fixed rate expires.
Michael and Kate
First Time Buyers – Meath
We would highly recommend using the Switcheroo Team! The online portal made everything really transparent and straightforward. The team in Switcheroo successfully helped us get credit approval after we were turned down by another bank due to a minor credit issue. Luke and Dylan were so helpful and communication was brilliant.
Cannot thank the team in Switcheroo enough. We are now owners of our dream home.
Karen and Shane
Movers – Dublin
Switcheroo helps us switch our mortgage to a cheaper rate. I have to say that both Luke and Dylan were brilliant, they were the best that I have worked with in any financial institution! They were so prompt and pro active with any query I had and Dylan’s help over the last 2 weeks to hit our target date of today was exceptional. I got several updates per day and even when I called him on his day off, I got a text back within minutes. I will definitely be recommending to my family, friends and work colleagues to look at switching their mortgage with this team
Mark
Switchers – Galway
