BOI announced that it will reduce its fixed green mortgage rate by 0.1% to 1.9% from 22 March. The mortgage will be available to new customers who are borrowing €250,000 or more and are buying a home with an energy rating of at least B3 or higher.
The interest rate cut comes as a surprise as other banks have started to increase their rates ahead of expected increases from the European Central Bank. Ireland’s Central Bank said mortgage rates increased by the most in five years in January after hitting rock bottom. The small rise in rates equates to about a €40 monthly increase on a €300,000 mortgage, but will only impact those on a variable rate or tracker mortgage.“This rate drop from the Bank of Ireland will be welcomed by many first time buyers and homeowners looking to switch their mortgage. While their competitors are upping interest rates, BOI are dropping them which is a bold move in the current market and it will be interesting to see which was other lenders go.