Most new buyers are considering cheaper green mortgages

And large numbers of existing homeowners are likely to undertake home improvements to improve their home’s BER (Building Energy Rating), according to research commissioned by Bank of Ireland.

People who buy a new home with a B3 or better energy rating and those who carry out home improvements on older homes are eligible for a green mortgage rate. Rates on green mortgages are often up to one percentage point lower than other mortgage types and new homes have high energy ratings.

The survey found six out of 10 first-time buyers are now considering green mortgages when purchasing their future homes.

And 90pc of first-time buyers believe BER is a deciding factor when purchasing a property. More than four in five are likely to undertake home improvements post-purchase to improve their home’s BER.

Bank of Ireland launched Ireland’s first green mortgage in 2019 and green mortgages accounted for over half of its total new mortgage drawdowns in the first half of this year.

The survey found 65pc of 25 to 30-year-olds are thinking about green finance options for their new home. The research, conducted by Red C, found the biggest barrier to improving a home’s energy efficiency is the cost. ​

“Purchasing your first home is a big decision, and it’s reassuring that buyers are so focussed on future-proofing their homes as well as enhancing their financial well-being and protecting the environment,” said Alan Hartley, director of home buying at Bank of Ireland.

The data also suggests more people are trying to buy on their own, rather than with a partner. Some 27pc are now looking to purchase independently compared with 19pc in 2017.

In contrast, 69pc plan to buy with a partner, which is at its lowest level in six years. ​

It comes as separate data revealed it now costs so much to build a standard three-bed semi-detached house in the Dublin region that buyers need a combined salary of at least €128,000 to afford it.

Surveyors have calculated it costs €461,000 to deliver a three-bed semi in Dublin. This is up by €90,000 in the last three years, according to new research from the Society of Chartered Surveyors Ireland.