With mortgage rates on the rise, Avant is giving customers the opportunity to lock into a lower fixed rate for the entire length of their mortgage
Over the past 18 months or so mortgage rates have only been going one way. And that’s up.
And they’re likely to increase even more over the coming year.
But Avant Money, part of Spanish banking giant Bankinter, which started selling mortgages here in 2020, is bucking the trend by cutting its longer-term fixed rates. It’s also introducing a limited cashback offer for switchers.
What’s happening?
Avant is upping its short-term fixed rates over three, four and five years by an average of 0.30 percentage points. However despite the increase, Avant’s rates will remain among the lowest in the market.
On the other hand, in a surprise move, Avant is reducing the longer-term fixed rates under its ‘One Mortgage’ product by 0.35 percentage points.
Avant's 'One Mortgage' is for customers who want to fix for the entire length of their mortgage and offers a fixed rate of up to 30 years.
The rates under its 'One Mortgage' product will now go from just 3.95% to 4.10% depending on how much equity is in your home if you’re a switcher or the size of your deposit if you’re a first-time buyer. These rates are extremely competitive in today’s market especially as the European Central Bank (ECB) is likely to increase its main lending rate to 4.25% by the end of the summer. This means the cheapest mortgage rate on offer in Ireland by the end of the year is likely to be over 5%.
Avant is the only lender in Ireland to offer a fixed rate longer than 10 years. The longest fixed rate offered by Permanent TSB is seven years and the longest fixed rate offered by EBS is just five years for example.
Fixing for the entire length of your mortgage means you never have to worry about rising interest rates or your repayments going up. This peace of mind and stability can be worth a lot to many people.
And, for a limited period, Avant Money will guarantee that the interest rate quoted in your official Loan Offer will remain valid for three months - even if rates go up in the meantime.
Avant Money’s new mortgage rates
Here’s a look at Avant’s new shorter-term fixed rates. Its three, four and five-year rates have increased by an average of 0.30 percentage points. However its seven-year rate has remained unchanged and its 10-year rate has reduced.
|
Fixed-term period |
60% LTV |
70% LTV |
80% LTV |
90% LTV |
|
3-year |
3.60% |
3.65% |
3.75% |
3.80% |
|
4-year |
3.75% |
3.80% |
3.85% |
3.90% |
|
5-year |
3.80% |
3.85% |
3.90% |
3.95% |
|
7-year |
3.95% |
4.00% |
4.05% |
4.10% |
|
10-year |
3.95% |
4.00% |
4.05% |
4.10% |
|
Follow-on variable rate |
3.50% |
3.50% |
3.70% |
3.70% |
And here are Avant’s new fixed rates under its ‘One Mortgage’ product. These rates are only for customers who want to fix their mortgage for the entire term. For example, if you choose a 30-year mortgage term, then you must choose the rate of up to 30 years. You cannot choose the 15, 20 or 25-year rate and then move to a variable rate or re-fix at the end of the term. You must fix for the entire term up front.
|
One Mortgage rates |
60% LTV |
70% LTV |
80% LTV |
90% LTV |
|
Up to 15 years |
3.95% |
4.00% |
4.05% |
4.10% |
|
Up to 20 years |
3.95% |
4.00% |
4.05% |
4.10% |
|
Up to 25 years |
3.95% |
4.00% |
4.05% |
4.10% |
|
Up to 30 years |
3.95% |
4.00% |
4.05% |
4.10% |
With interest rates predicted to rise even further, our unique One Mortgage offers customers the option of fixing their mortgage repayments now, thus avoiding any further increases.
Brian Lande, Head of Mortgages at Avant Money
New mortgage switching offer
Avant has also launched a new switching offer.
It’s offering €1,500 cashback to people who switch their mortgage to Avant's 'One Mortgage' product between 26 May and 29 September.
To avail of the offer you must fully complete the switch (i.e. draw down your new mortgage) by 29 December 2023 and be switching a balance of at least €200,000.
Is this a sign mortgage rates are going to start falling?
In short, no.
As mentioned it's likely the ECB will continue to hike rates over the coming months. And by at least another 0.50 percentage points.
This means more hikes from all lenders in the market, as well as Avant, are likely over the coming months.
It could be 2025 until we see rates start to fall.
Is a longer-term fixed rate right for me?
There are pros and cons to fixed rates of course, which we discuss in more detail here.
However Avant’s fixed-rates offer a degree of flexibility that not all lenders provide.
For example, you’re allowed overpay up to 10% of the outstanding balance on your mortgage each year without any penalty.
And if you want to fully pay off your mortgage early, or switch to another lender at some stage in the future, there is a simple and transparent fee: 2% of the outstanding balance on your mortgage for the first 10 years and 1.5% thereafter.
And if you decide to move property, Avant will waive or refund the above fee if you keep your mortgage with the lender - subject to certain terms and conditions.
Apply today
You can only apply for a mortgage with Avant Money through a select panel of brokers - one of which is bonkers.ie!
If you’re thinking about applying for a mortgage with Avant, and feel you’re almost ready to submit an application, our free mortgage broker service will help you on your journey.
Our service is fully digital and paper-free, meaning you can upload documents from the comfort of your home. And one of our experienced mortgage experts will be on hand to guide you through the entire mortgage application process.
Don’t forget that you’ll also need mortgage protection insurance and home insurance to draw down your mortgage, both of which you can get here on bonkers.ie.
