IDEAS home Printed from https://ideas.repec.org/p/cbi/fsnote/4-fs-23.html
   My bibliography  Save this paper

Going Green – The Growth in Green Mortgage Financing in Ireland

Author

Listed:
  • Lambert, Derek

    (Central Bank of Ireland)

  • Lyons, Paul

    (Central Bank of Ireland)

  • Carroll, James

    (Central Bank of Ireland)

Abstract

Green mortgages are a recent financial innovation, being established as a mainstream product in Ireland in 2019. By offering borrowers lower interest rates, green mortgages support wider emissions targets by incentivizing households and businesses to invest in energy efficiency. In this Note, we estimate the growth in green mortgage financing in Ireland and describe the characteristics of green mortgage borrowers and loans. We find that, despite their very recent introduction, green mortgages account for a sizable and growing share of mortgage lending, representing almost thirty per cent of originations in 2022. We also find that first time buyers (FTBs), those switching their mortgage, and borrowers in the Leinster region are the most likely cohorts to avail of green mortgages. Furthermore, green mortgage loan amounts are larger, are associated with higher value properties and are more prevalent in higher income groups, particularly for FTBs. This latter point suggests that there is a risk that the efficiency gap between high and low income groups could widen into the future. We also find evidence that some eligible borrowers have not availed of/received a green mortgage.

Suggested Citation

  • Lambert, Derek & Lyons, Paul & Carroll, James, 2023. "Going Green – The Growth in Green Mortgage Financing in Ireland," Financial Stability Notes 4/FS/23, Central Bank of Ireland.
    • Handle: RePEc:cbi:fsnote:4/fs/23
    as

    Download full text from publisher

    File URL: https://www.centralbank.ie/docs/default-source/publications/financial-stability-notes/going-green-the-growth-in-green-mortgage-financing-in-ireland.pdf?sfvrsn=d7659e1d_5
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adhikari, Tamanna & Carroll, James & Lambert, Derek, 2023. "An Estimate of Climate-Related Transition Risk in Irish Mortgage Lending," Financial Stability Notes 1/FS/23, Central Bank of Ireland.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      NEP fields

      This paper has been announced in the following NEP Reports:

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbi:fsnote:4/fs/23. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fiona Farrelly (email available below). General contact details of provider: https://edirc.repec.org/data/cbigvie.html .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.