What is a Green Mortgage and Who is Eligible?
Green Mortgages have gained popularity as homeowners seek ways to reduce their carbon footprint and save on energy bills. These home loans incentivize energy-efficient and environmentally-friendly features in a property. Green Mortgages function like standard mortgages but offer lower fixed interest rates to those who purchase or own an energy-efficient home.
Eligibility for Green Mortgages is similar to standard mortgages, with the added requirement of a minimum Building Energy Rating (BER) of B3 or higher. Green Mortgages are available to:
- First-Time Buyers
- Home Movers
Upgrading your home to increase its BER rating to B3 or above may also make you eligible for a Green Rate Mortgage from your existing lender. For information on grants to improve your home’s energy performance, visit: https://www.citizensinformation.ie/en/housing/housing_grants_and_schemes/home_energy_saving_scheme.html
Understanding Building Energy Ratings (BER)
A BER rates a house’s energy efficiency on an A-G scale, with A being the most efficient and G being the least. A-rated homes use less fuel, as they conserve heat more effectively, resulting in lower energy bills and a reduced environmental impact.
A BER Certificate is required when selling or renting a property and is valid for ten years unless changes affecting energy performance are made. Find a local BER assessor through the SEAI National Register of BER Assessors: https://ndber.seai.ie/PASS/Assessors/Search.aspx
Pros and Cons of Green Mortgages
Like standard mortgages, Green Mortgages have both advantages and disadvantages:
- Encourages energy-efficient home purchases, reducing monthly bills
- Rewards homeowners who retrofit their home for a higher BER
- Offers potentially lower interest rates than standard mortgages
- Helps reduce your carbon footprint
- Homes with good BERs may sell faster and be more appealing
- Cashback and other offers may not be available
- Retrofitting to meet BER requirements can be expensive
- Limited fixing options compared to standard mortgages
- Not always the cheapest option; seek advice from a Mortgage Advisor
Are Green Mortgages Environmentally Friendly?
While Green Mortgages offer lower interest rates for energy-efficient homes, they don’t directly contribute to environmental initiatives. However, they do incentivize energy-efficient home purchases and upgrades, reducing your carbon footprint and energy consumption.
Seeking Expert Advice for Green Mortgages?
At ezfees financial Mortgage and Life Brokers, we compare rates across multiple lenders to find the best mortgage for you. A Green Mortgage may not always be the best or cheapest option, so it’s essential to consult a Mortgage Broker.
For more information on available options, call 0818 910800 or email email@example.com. Our qualified, experienced, and friendly Mortgage Advisors will guide you every step of the way.
If you’re considering switching your mortgage, read our blog on why you should switch with ezfees financial: https://ezfeesfinancial.ie/switch-your-mortgage-with-ezfees-financial/