Existing Bank of Ireland customers can’t avail of its lowest mortgage rate, losing out on savings of over €700 a year

This might see them miss out on financial savings of greater than €700 a 12 months.

The financial institution final week launched a brand new home-loan product providing tiered reductions for houses which have any stage of Constructing Power Score (BER). It mentioned new and present clients might qualify for this new EcoSaver Mortgage.

However present clients will be unable to mix the brand new EcoSaver with what the financial institution calls its Excessive-Worth Mortgage. If they might, they’d qualify for a mortgage price as little as 3.6pc.

The financial institution provides decrease curiosity on fixed-rate mortgages for these borrowing greater than €250,000.

However present debtors will be unable to avail of the Excessive-Worth ­Mortgage charges in the event that they go for the EcoSaver because the Excessive-Worth Mortgage is just not obtainable to present clients. This implies they must pay greater than a brand new mortgage buyer.

Earlier this month, AIB Group was accused of discriminating in opposition to mortgage clients by reducing inexperienced lending charges whereas leaving different charges untouched. AIB and its subsidiaries, EBS and Haven, diminished their inexperienced mortgage charges, however not different home-loan charges.

Final month, PTSB launched a brand new three-year mounted price for inexperienced mortgages, with charges from 3.8pc for brand spanking new clients. Nonetheless, present PTSB clients coming off mounted charges will be unable to use for the brand new inexperienced price or the decrease four-year mounted price.

Inexperienced price mortgages first got here to the Irish market in 2019 and since then have been on supply from Financial institution of ­Eire, Everlasting TSB and AIB Group together with Haven Mortgages and EBS.

Martina Hennessy, the managing director of brokerage Doddl.ie, mentioned Financial institution of Eire had now withdrawn its inexperienced price mortgages in favour of an ­EcoSaver mortgage. This new product has 64 totally different charges relying on the fixed-term mortgage quantity and BER.

“The product basically permits for a reduction on the BoI charges based mostly on the vitality ranking,” she mentioned. “The ­largest low cost is 0.35 share factors for A-rated houses, proper right down to 0.05 factors low cost on normal charges for a G vitality ranking. BER-exempt houses don’t have any low cost.”

The benefit of the Financial institution of Eire product is that it’s open to all mortgage candidates with a BER from A to G. However Ms Hennessy mentioned the drawback was that the financial institution was providing its ­lowest high-value (larger than €250,000) mortgage with EcoSaver charges to new enterprise clients.

“The high-value EcoSaver price is just not open to present mortgage clients, that means, proper now, an A-rated mortgage holder with BoI with a mortgage of €250,000 or extra can not avail of their lowest 3.6pc price and the perfect price on supply could be 3.8pc.”

Ms Hennessy mentioned for a mortgage buyer with a €300,000 mortgage with 30 years remaining, the distinction between these two charges could be €60 a month, or €720 a 12 months.

She mentioned Haven Mortgages was ­providing a €2,000 switcher bundle and reduced-document journey, making it simpler for present mortgage holders to modify to its inexperienced price.

The dealer mentioned latest mortgage price cuts by lenders meant the expectation now was that there could be extra decreases over the approaching months.

“A collective drop in charges throughout the lending market is just not going to occur quick. Nonetheless, we will anticipate to see lenders tweaking key charges to stay aggressive as they proceed to compete for market share.”

A Financial institution of Eire spokesperson confirmed its EcoSaver mixed with the Excessive-Worth Mortgage was for brand spanking new clients solely. “Our lowest EcoSaver mounted price for present clients with a BER A is 3.8pc, in contrast with 3.6pc for a new-business Excessive-Worth Mortgage with out money again.”

The financial institution mentioned all present buyer charges have been obtainable to clients regardless of remaining mortgage stability or present loan-to-value.