Bank of Ireland has outlined a new lending initiative that aims to make it easier for homeowners who wish to downsize. The bank plans to pilot the product in early 2026, and it will be open to all homeowners rather than being restricted to existing customers.
The loan is part of a broader package of measures the bank is pursuing to stimulate housing supply. Bank of Ireland said it is exploring further product developments that would help growing families move to larger homes. These initiatives follow discussions with a panel of private sector figures, including homebuilders, investors, industry groups and advisers, who were asked to identify obstacles affecting the delivery of new housing.
The bank has also proposed the creation of a regular housing finance forum, bringing together senior public and private sector figures to track market developments and share insight. According to the bank, this forum could serve as a structured space for feedback and collaboration aimed at improving the pace of homebuilding.
In addition, Bank of Ireland is committing to a mentoring scheme for smaller developers. This will be delivered in partnership with State agencies and other financial institutions, with the intention of helping early-stage or small-scale homebuilders to strengthen their business practices and increase capacity.
Group chief executive Myles O’Grady noted that planning, zoning and the availability of serviced land continue to pose challenges, although many of those factors sit outside the banking sector’s control. He argued that banks can still play a pivotal role by supporting development through financing and equity solutions. He added that the bank intends to continue examining how it can address barriers to housing delivery and support efforts to increase supply.
Under the proposed downsizing loan, customers will be able to release funds to purchase their new home before completing the sale of their current property. Both homes will act as security during the transaction. The sale of the original home is expected to clear the loan and any interest due within twelve months. The bank has indicated that the maximum drawdown will be capped at 60 per cent of the value of the property being sold, and the variable rate on the loan will be seven per cent.
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