Bank of Ireland will launch a new loan scheme in early 2026 aimed at helping homeowners “trade down” to a smaller property, the bank has announced. The initiative will be available to all homeowners, including those who are not existing customers.
The loan, part of a broader package of measures to support housing supply, will allow homeowners to purchase a new property before selling their current home. Both properties will act as security, and the sale of the existing home will clear the borrowing and any accrued interest within 12 months. The maximum borrowing amount at drawdown will be 60% of the current valuation of the property being sold, with a variable interest rate of 7%. For example, a €400,000 loan would cost around €28,744 for a 12-month term or €14,123 for six months.
Bank of Ireland said the initiative is part of a wider strategy to encourage housing construction and address supply shortages. The bank is also exploring products to help expanding families “trade up” to larger homes.
The measures were informed by a group convened by the bank, comprising private sector representatives including homebuilders, equity investors, professional services firms, and representative bodies. The group considered barriers to housing supply and potential solutions, including access to finance.
Myles O’Grady, Group Chief Executive of Bank of Ireland, acknowledged that housing supply issues are “multifaceted” and involve planning, zoning, and land availability, which are largely outside the private sector’s control. “We hold an important piece of the solution, financing for the construction of homes,” he said.
The bank has also proposed the creation of a regular housing finance forum, allowing government officials and private sector leaders to exchange insights, discuss market developments, and identify measures to sustainably increase home building.
In addition, Bank of Ireland will join other national banks and government bodies to establish a mentoring programme for smaller homebuilders. The programme aims to help developers professionalise, scale up operations, and ensure the growth of a sustainable and vibrant home building sector in Ireland.
O’Grady highlighted the bank’s broader support for housing, including the provision of equity finance and the exploration of new equity solutions with partners. “Banks have a significant role to play in driving housing supply, which is a key societal and economic priority for the country. We will continue to play our part in helping solve this issue and challenge ourselves to do more,” he said.
The new loan scheme is expected to offer a practical solution for homeowners seeking to move while addressing wider challenges in Ireland’s housing market, combining flexibility with financial security for both buyers and sellers.
