Bank of Ireland is cutting some of its green mortgage rates, going against expectations of a rise in lending rates across the mortgage sector.

A green mortgage is given to homes with a high building energy rating (BER) – usually they are already at the upper end of the market and often out of reach for first-time buyers.

The bank is reducing the rate on its green mortgage to 1.9%, for new customers borrowing €250,000 or more.

It can be used by people who are buying or building a home with a BER of B3 to A1.

It will also reduce its green four-year high value mortgage fixed interest rate by 0.1% to 1.90% and its four-year high value mortgage fixed interest rate by 0.1% to 2.20%.

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It is allowing those borrowing €250,000 or more to qualify – previously, consumers had to borrow €300,000 or more.

The new rates will be available from March 22.

EBS recently its first green mortgage for new and existing customers with a four-year fixed rate of 2.1% available for loans on homes with a BER of between A1 and B3 certified in the past year year.

The AIB-backed lender said customers would be moved onto a variable rate at the end of the four years -- the standard EBS variable rate is currently 3.7%.

Customers with a €300,000 mortgage being paid back over 25 years who are currently on the 3.7% variable rate would save €248.02 on their monthly repayments if they switched