Green deal could save mortgage holders €80 a month

Mortgage holders could save almost €80 a month by switching to a 'green deal', according to estate agents, and the PTSB has confirmed that existing homeowners will be able to take advantage of green fixed rates as low as 3.5% from the end of July. The bank announced these rates for new borrowers in May. In order to qualify for the rate, the mortgaged property must have a BER of A1 to B3 inclusive and have at least three years left on the mortgage.

Rachel McGovern, director of financial services at Brokers Ireland, said the move shows that green mortgages are now "one of the best rates in the market". "If a customer switches from the current average rate of 4.17% to a new mortgage with a loan-to-value ratio of 60-80%, they could save €78.16 per month (on mortgages of €250,000 or more)," she said, adding that now is a time when mortgage holders " need to think very carefully," she said, adding that this was a time when mortgage holders " need to think very carefully," and suggesting that "there is a lot of money to be saved. She said many mortgage holders had not reviewed their loans for several years and were "leaving too much money with the lender".

By comparison, Bank of Ireland's three-year fixed rate for existing customers is 3.9% for BER A-rated homes and 3.95% for BER B-rated homes. A spokesman for the bank pointed out that the rates apply to all LTVs (i.e. the value of your property to the loan) and all home loan-to-values.AIB offers green mortgages as low as 3.45%.

"As property values have risen in recent years, LTV ratios for many mortgage holders could improve significantly," Ms. McGovern said. "This could qualify you for a better rate on your loan, regardless of your BER."

A September rate cut by the European Central Bank (ECB) is "very likely", said Stefan Gerlach, a former deputy central bank governor. Gerlach, who was vice president of the ECB from 2011 to 2015, said he expects inflationary pressures in the eurozone to weaken further and that, combined with "natural weakness" in economic activity, the ECB will be able to continue to lower interest rates. said, "The likelihood of a rate cut in September is high."