A home loan can give fast access to credit, especially if homeowners want to improve efficiency levels
It won’t come as a surprise to anyone living in the suburbs that spending on home loans is on the rise.
Every cul-de-sac and street is parked up with builders’ vans and skips, with tradespeople working their way from one job to another within the road, without even having to advertise.
The figures back this up.
Last month, the Banking and Payments Federation Ireland (BPFI) published its quarter one report findings, which showed that loan drawdown volumes and values reached a new high, with a total of 60,770 personal loans amounting to €683 million borrowed.
Issued on a quarterly basis, the BPFI Personal Loan Report details the volume, values and uses of personal loans drawn down from participating BPFI member banks.
Of these, there were 15,372 home improvement loans, which is up 18.2 per cent year on year.
These were valued at €198 million, 19.2 per cent higher than the previous year, with the average home improvement loan having increased by €116 to €12,886.
Rates on such loans are typically higher than mortgages, but accessing this form of finance can be easier and may take less time to get approval in principle.
There are many lenders offering this service, but An Post Money offers one of the most competitive rates of 6.9 per cent APR on sums of €20,000 to €30,000, explains Michael Hall, marketing manager at the lender.
Once it’s comfortable with the borrower’s credit and repayment ratings, it does not require additional validation as to how the monies are spent.
This means you don’t have to chase a tradesperson or builder for a breakdown of costs to furnish.
“Once it has been fully approved, the money will be in the account on the date after,” Hall explains.
Pricing is personalised, and other considerations include that the borrower is a homeowner aged between the ages of 35 and 55 and has job tenure.
How long they are resident in the country will also play into the decision-making process.
Would-be borrowers can check their eligibility on its online calculator.
The BPFI report also looks at green loan activity, covering borrowings for green cars and green home improvement loans.
This sector demonstrated the highest activity levels since the green loan data series began in 2022.
The average green loan rose by €474 year on year to €22,906, more than double the value of the average personal loan of €11,239.
Anthony O’Brien, head of sector research and analysis at BPFI, said green personal loans, which comprise of green car and green home improvement loans, had the highest relative jump in value of 29.3 per cent year on year to €35.1 million in Q1 2025.
An Post’s is one of many lenders offering a green loan in the form of its home energy upgrade loan.
Launched last February at An Post, this low-cost financing is offered in conjunction with the Strategic Banking Corporation of Ireland (SBCI), backed by the Government to help eligible homeowners fund a retrofit project.
The loan is not based on achieving a certain Ber rating, explains Cliona Coakley, An Post’s retail credit products manager.
The upgrades are carried out in conjunction with the Sustainable Energy Authority of Ireland (SEAI) have to be SEAI grant-aided.
“To avail of these rates, the energy efficiency of the property needs to be increased by 20 per cent.
"In advance of a borrowing application, an SEAI contractor accesses the home and furnishes a home energy survey report that has to be submitted with the loan application.”
The report also explains what grants the homeowner is eligible for.
She also points out that 75 per cent of the loan has “to demonstrably be for energy efficiency purposes”.
Through An Post Money, homeowners can borrow sums between €5,000 and €75,000.
There are three tiers of rates.
Sums from €5,000 to €9,999 are charged at 7.2 per cent APR; sums between €10,000 and €19,999 will cost 5.9 per cent APR, while sums above €20,000 will be charged 3.7 per cent APR.
