In a statement, Alan Hartley, the director of homebuying at Bank of Ireland, emphasized the broad applicability of the new rates: “These reduced rates are available to all new and existing customers from today and they apply all the way up and down the BER scale, not just to those homes with the best energy ratings.”

The bank is also introducing a new 1-year fixed-rate mortgage without a cashback option, starting at 3.3% for loans of €250,000 or more. Notably, variable and tracker mortgage rates remain unchanged.

In addition to its mortgage adjustments, the Bank of Ireland has revamped its deposit offerings. A new 18-month ‘Advantage Fixed Term Deposit Account’ has been launched with an Annual Equivalent Rate (AER) of 2.98%. Meanwhile, the 24-month fixed-term deposit account, previously offering an AER of 2.96%, will be discontinued. Customers using the new 18-month deposit account will be permitted to withdraw up to 25% of their savings balance during the term.

These measures indicate the bank’s commitment to providing competitive financial solutions amid evolving market demands.

The scam typically initiates with a deceptive text message, seemingly dispatched from government sources, informing recipients that they qualify for significantly reduced energy bills. These messages are meticulously crafted to appear legitimate, often mirroring the tone and formatting used in official government communications. However, their ultimate aim is nefarious: to lure individuals into divulging their sensitive banking information.

Nicola Sadlier, the Head of Fraud at Bank of Ireland, is at the forefront of efforts to educate the bank’s clientele about these deceptive tactics. She emphasizes the importance of vigilance and advises customers against clicking on links embedded in unsolicited messages. “It’s crucial to verify the authenticity of any communication claiming to reduce your bills or offering financial perks,” Sadlier advises. “Always cross-reference with official channels and never share personal banking details via text or email.”

The mechanics of this scam are simple yet effective. Victims are persuaded to click on a link that redirects them to a counterfeit website, an imitation so convincing that it’s easy to mistake for a legitimate government or financial institution page. Once on the site, individuals are prompted to enter their bank account details to supposedly receive their promised benefits. Instead, the information provided is harvested by scammers, who can then access the victim’s funds or commit identity theft.

Bank of Ireland has reported a noticeable uptick in these fraudulent activities coinciding with the public’s heightened anticipation of the Budget 2025 announcements. In response, the bank is intensifying its customer education efforts, utilizing various channels to spread awareness and provide actionable advice on how to recognize and report such scams.

Starting later this year, homeowners will have the opportunity to borrow between €5,000 and €75,000 at interest rates starting as low as 3 percent. This move follows the earlier involvement of Permanent TSB in the Home Energy Upgrade Loan Scheme, launched in April 2024 with an initial fund of €500 million. The scheme is expected to expand further, with several credit unions anticipated to join in the coming weeks.

Ministers Applaud New Loan Options

The addition of AIB and Bank of Ireland to the retrofitting scheme has been warmly welcomed by Environment Minister Eamon Ryan and Finance Minister Michael McGrath. Both ministers believe that the increased competition in the market will offer homeowners more options and better value for their investment in home energy efficiency.

Minister Ryan expressed his enthusiasm, stating, “The increased competition in the market means homeowners will now have more choice and greater value. Low-cost just got lower, which is good news for householders. I am delighted AIB and Bank of Ireland are now participating and very much welcome the extremely competitive rates starting from 3 percent, which are the best green loan rates available on the market.”

Benefits of Home Retrofitting

Home retrofitting involves upgrading the energy efficiency of existing homes, which can lead to significant reductions in energy consumption and costs. Common retrofitting measures include installing better insulation, upgrading heating systems, and incorporating renewable energy sources such as solar panels. These improvements not only make homes more comfortable but also contribute to environmental sustainability by reducing carbon emissions.

The availability of low-interest loans through the Home Energy Upgrade Loan Scheme makes these upgrades more accessible to a wider range of homeowners. By spreading the cost of retrofitting over several years with affordable repayment terms, homeowners can invest in their properties without facing prohibitive upfront costs.

Market Impact and Future Prospects

The involvement of AIB and Bank of Ireland is expected to stimulate the market for home energy efficiency upgrades. With more financial institutions offering competitive loan products, homeowners are likely to find it easier to secure funding for their retrofitting projects. This increased market activity can also drive innovation and cost reductions in the retrofitting industry, further benefiting consumers.

Finance Minister Michael McGrath highlighted the potential economic benefits of the scheme, noting that it can create jobs and stimulate local economies. “The Home Energy Upgrade Loan Scheme is not just about making homes warmer and more energy-efficient; it’s also about creating employment opportunities and supporting local businesses. The participation of major banks like AIB and Bank of Ireland will help ensure the success of this initiative,” he said.

How Homeowners Can Apply

Homeowners interested in applying for the low-cost retrofitting loans can contact AIB, Bank of Ireland, or Permanent TSB for more information on eligibility criteria and application processes. It is advisable to obtain multiple quotes for retrofitting work to ensure the best value for money. Additionally, homeowners may wish to consult with energy advisors to identify the most effective upgrades for their specific properties.

Conclusion

The expansion of the Home Energy Upgrade Loan Scheme to include AIB and Bank of Ireland marks a significant step forward in Ireland’s efforts to improve home energy efficiency. With lower interest rates and increased competition in the market, homeowners now have better opportunities to invest in sustainable home improvements. This initiative not only benefits individual households but also supports broader environmental and economic goals, making it a win-win for all involved.