Mortgage glossary

A home’s Building Energy Rating (BER) is an assessment of its energy efficiency on a scale of A to G. A-rated homes are the most energy efficient and G-rated are the least energy efficient.

The rating is calculated based on the energy performance of its heating, cooling, ventilation, and lighting systems.

Compensation you may have to pay if you repay a fixed rate mortgage earlier than planned or switch lenders during the fixed rate period.

A mortgage for buying a house or apartment that you plan to rent out instead of living in it yourself.

The amount of money you borrow to buy your home.

The property you’re buying, which serves as security for your mortgage.

A number that shows how good you’ve been at borrowing money and repaying money.

When you apply for a loan, credit card, hire purchase agreement, or mortgage we look at your past borrowing history and the information you gave us in your application to give you a rating. This rating helps us decide if we can lend to you and how much you can borrow.

The amount of your monthly income used to pay debts. It helps us determine how much you can afford to borrow.

The money you save up or have inherited and use to pay upfront when buying a house. Your deposit amount should typically be at least 10% of the purchase price. For buy-to-let properties the deposit is usually 30% of the purchase price.

This is a permission you give us to take an amount of money straight from your bank account on a specific date, to make your mortgage repayments.

This is when we give your solicitor money so they can make the payment for your new home. It usually happens after all the paperwork is finished and the sale is ready to go through.

In the case of switchers and equity release customers, the money is not used to pay for a new home.

The EcoSaver fixed interest rate provides customers with discounts on fixed interest rates based on their Building Energy Rating (BER). The better the BER, the better the fixed rate. You must supply a BER certificate to take advantage of the EcoSaver fixed rate. Terms and conditions apply.

Equity is the difference between the value of your property and what you owe on your mortgage loan.

For example, if your home is worth €200,000 and you still owe €150,000, your equity is €50,000.

Equity release lets you borrow money using the value of your home. If your home is worth more than what you still owe on your mortgage, you may be able to take out an extra mortgage loan (called an equity release) secured against your property.

For example, if your home is worth €300,000 and you still owe €150,000 on your mortgage, you could release up to 90% of your home’s value. That means you could borrow up to €120,000.

A first-time buyer is someone who has never before (either on their own or with others) had a mortgage in Ireland or abroad. It also includes someone releasing equity from a family home they inherited or bought outright (whether with cash or a gift) and have never had a mortgage on it before, or who has a first-time buyer mortgage and now wants to release equity.

A mortgage with an interest rate that stays the same for a set period, no matter if market interest rates go up or down. This means your repayments also stay the same for a set period.

A policy you pay that covers the cost of fixing or replacing your house and belongings if something like fire, flood, or burglary happens. You must take out a home insurance policy when you draw down a mortgage.

If you’re borrowing €250,000 or more, you can choose a fixed interest rate for 1, 4, 5, or 7 years. After that, you can switch to one of our regular rates.

This option doesn’t include cashback, but it may offer a better interest rate than our standard fixed rate with cashback.

The High Value Mortgage fixed interest rate is available to you if you are buying or building a property to live in as your home or are switching your mortgage loan to the Bank of Ireland Group from another mortgage lender outside our Group.

If you have an EcoSaver fixed rate, you could get a better interest rate if your home’s energy rating (BER) improves by at least one full letter. For example, moving from C3 to B1 qualifies, but C3 to C1 does not.

See our Improver terms and conditions on our EcoSaver page.

The rate of interest you will pay on the loan, which can be fixed, variable or a split of both. See our rates table.

Costs you pay to a solicitor for helping you with the paperwork and legal steps (like transferring ownership and registering your title), when buying a home.

Your LTI ratio limits the amount of money you can borrow generally to a maximum of 4 times gross income for first-time-buyers and 3.5 times gross income for second/subsequent buyers.

This is the amount that you’re borrowing compared with the value of the property you’re buying. For example, if a house is valued at €300,000 and you borrow €240,000, your LTV is 80%.

The date your mortgage is due to be paid off.

A life insurance policy that helps towards repaying your mortgage if you pass away or are diagnosed with a covered serious illness (if you choose this benefit), giving peace of mind to you and your family. You must take out a mortgage protection policy when you draw down a mortgage on your home.

The amount of money you pay each month to pay back the mortgage amount and interest.

A loan up to 35 years, secured by a mortgage against your home.

A formal document from us confirming we agree to give you a mortgage. It outlines how much money we’ll lend, the interest rate, and the terms and conditions of the loan.

Also known as a payment break. If you run into extra expenses in a year, like the birth of a child or school fees, you can choose to take a three-month payment break up to three times over the life of your mortgage. Subject to approval.

This means your home is worth less than the amount you still owe on your mortgage.

For example, if you home is worth €200,000, but you still owe €220,000. Negative equity is €20,000.

This is when you pay extra money on top of your regular mortgage repayment. It can help you pay off your mortgage faster and save on interest.

Also known as a moratorium. If you run into extra expenses in a year, like the birth of a child or school fees, you can choose to take a three-month payment break up to three times over the life of your mortgage. Subject to approval.

The amount of money you originally borrowed to buy your home. It does not include any interest or fees.

A house or apartment which you own and occupy as your main residence.

An annual fee you pay to the local authority based on the value of your home or property.

The process of paying off your mortgage in full, either at the end of the term or earlier than expected. This might happen if you sell your property or switch to another lender.

When you buy/inherit/are gifted land and build your own home instead of buying an already built property.

This is when part of your mortgage has a fixed rate (which stays the same) and the other part has a variable rate (which can go up or down). You also have the option to split between two fixed rates.

A tax you pay to the government when you buy a property or land. Currently, in Ireland, it’s 1% of the property price up to €1,000,000, 2% on the next €500,000, and 6% on any amount over €1,500,000. For non-residential property, the current rate is 7.5%.

An inspection of a property by a professional surveyor to check for any problems or issues before you buy it. This is recommended before you draw down your mortgage.

Moving your mortgage from one lender to another to take advantage of better interest rates or terms.

Length of time over which you repay your mortgage.

This is when you increase the amount of time over which you repay your mortgage. It usually means your monthly repayments will be smaller, but you will pay more interest in the end. Subject to approval.

Terms and conditions are the rules or guidelines set by a lender that explain the rights, responsibilities, and obligations of both you and the lender in an agreement, such as a mortgage contract.

Legal documents that prove you own a property or land. These are held by us as security until your mortgage is fully repaid.

A type of mortgage where the interest rate follows (“tracks”) the rate set by the European Central Bank (ECB). This means that the interest rate goes up or down whenever the ECB changes the rate.

An official estimate of how much a property is worth, carried out by an approved valuer. This helps ensure the mortgage amount is appropriate for the property’s worth.

The interest rate on the mortgage is set by us and is influenced by market interest rates. These can go up or down during the life of the mortgage, at our discretion.