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Bank of Ireland has announced plans to pilot a new lending product designed to support homeowners who wish to trade down. The initiative, scheduled to launch in early 2026, will be available to all homeowners regardless of whether they are existing customers of the bank.

The bank said the new loan is part of a wider set of measures aimed at strengthening housing supply. It is also exploring additional products intended to help growing families move to larger homes, alongside a broader programme of initiatives developed following consultation with a panel of private sector representatives, including homebuilders, investors and professional advisers.

As part of its wider strategy, Bank of Ireland has written to Government proposing the establishment of a regular housing finance forum. The bank said such a forum would allow senior public officials and private sector leaders to share insights, monitor market developments and work collaboratively to address barriers to home building.

In addition, the bank will partner with other national lenders and State bodies to support smaller construction firms through a new mentoring scheme. The objective of the programme is to help emerging developers build stronger operational capabilities and scale sustainably, contributing to a more resilient and diverse home building sector.

Group chief executive Myles O’Grady highlighted the complexity of challenges impacting housing delivery, including planning, zoning and access to serviced land. He noted that while many of these issues sit outside the private sector’s direct control, banks play a crucial role in enabling construction through financing.

According to O’Grady, Bank of Ireland continues to support the market through equity funding and intends to explore further opportunities to expand these supports. He emphasised the bank’s commitment to assisting with housing supply, describing it as both a societal and economic priority.

The new loan for homeowners trading down will allow borrowers to release funds to purchase their next property before selling their current one. Both the existing home and the new property will be used as security, with the expectation that the sale of the original home will clear the loan and any interest within twelve months.

The bank confirmed that the maximum borrowing limit is 60 percent of the current market value of the property being sold. The loan will carry a variable interest rate of 7 percent. By way of example, a €400,000 loan would cost approximately €28,744 over twelve months or €14,123 over six months.

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