Avant Money cuts rates and goes countrywide

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Itchy

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www.rte.ie

Avant Money to cut mortgage interest rates

Mortgage lender Avant Money has said it will cut a number of its mortgage interest rates from 9 December.
www.rte.ie www.rte.ie

No reduction in rates for the lowest risk borrowers. No meaningful competition offered from the incumbents at this end of the market I suppose.
 
From the Press Release:
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Note 2: Claims relating to Ireland’s lowest rates and competitor rate comparisons are based on a review of all mortgage lenders per ccpc.ie as of 1st December 2021. Follow-on variable rates available to existing customers only after fixed rate period expiry. Follow-on variable rates quoted are subject to change and may be determined by prevailing market conditions at the time of fixed rate period expiry.

Avant Money has also announced that it is extending its lending locations to include all counties by expanding its network of preferred brokers.
 
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skrooge said:
Given they can't stop you breaking out of a fixed mortgage it would seem so
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I don't think it's that straight forward. I'm pretty certain that the legislation only covers early repayment of a fixed rate mortgage, not switching between rates.
I think you would need agreement from the lender to break out to switch rates, unless it's covered in the terms & conditions.
 
RedOnion said:
I don't think it's that straight forward. I'm pretty certain that the legislation only covers early repayment of a fixed rate mortgage, not switching between rates.
I think you would need agreement from the lender to break out to switch rates, unless it's covered in the terms & conditions.
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Hi Red

You are correct.

Follow-on variable rates available to existing customers only after fixed rate period expiry.

So if you break out of a fixed rate, they will offer you only other fixed rates.

Not sure why that would be?

Brendan
 
I have edited the second post to show the new rates.

Rates have not been cut on the longer term One Mortgage product
 
Is it known yet when they will go nationwide? Their website shows currently that only some counties are allowed.
 
Brendan Burgess said:
Avant Money has also announced that it is extending its lending locations to include all counties by expanding its network of preferred brokers.
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I gather it's immediately. They are extending their list of brokers.

But I would imagine that they will consider an application for a mortgage in Donegal or Kerry via one of their existing brokers.

Brendan
 
Brendan Burgess said:
Follow-on variable rates available to existing customers only after fixed rate period expiry.

So if you break out of a fixed rate, they will offer you only other fixed rates.

Not sure why that would be?
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I presume it is because there is no early repayment actually made.

Switching between banks, the customer draws down in a new mortgage and clears the outstanding balance in full. So an early repayment is made and you are subject to an ERC.

If you just want to switch between products, you are not technically repaying anything early so an ERC is not applicable to the situation. Even if the ERC is calculated as zero, you can't just break and move to variable because you have not actually made any payment on the outstanding balance

Although in practice, I assume most institutions will waive or ignore this to keep the customer.
 
_OkGo_ said:
If you just want to switch between products, you are not technically repaying anything early so an ERC is not applicable to the situation.
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This isn't technically correct.

An ERC is payable in all circumstances set out in your mortgage contract.

Some of the other lenders specifically set out your right to break from a fixed rate and select another rate.

Avant set out that they will apply an ERC, but you can only break out to switch rates with their prior agreement.
 
Per IT article today regarding Avant (& Finance Ireland):

Both lenders have also introduced incentives for mortgage switchers, covering up to €1,500.

This incentive isn't yet mentioned on Avant's website it seems. Does anyone have a link to any other sources confirming this inventive or any details regarding it?
 
gargoil7 said:
Per IT article today regarding Avant (& Finance Ireland):

Both lenders have also introduced incentives for mortgage switchers, covering up to €1,500.

This incentive isn't yet mentioned on Avant's website it seems. Does anyone have a link to any other sources confirming this inventive or any details regarding it?
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You got be all excited! Well as excited as one can get over mortgages...

The indo makes reference to the FI incentive but nothing for Avant. I imagine they would have flagged it with the rate reduction.

m.independent.ie

Pressure is building on big banks as Avant cuts loan rates

The pressure is being turned up on the big banks, with a new round of mortgage rate cuts being introduced by the lowest-cost home loans provider in the market.
m.independent.ie m.independent.ie

It might just be ambiguous wording from the IT
 
Brendan Burgess said:
From the Press Release:
View attachment 5943

Note 2: Claims relating to Ireland’s lowest rates and competitor rate comparisons are based on a review of all mortgage lenders per ccpc.ie as of 1st December 2021. Follow-on variable rates available to existing customers only after fixed rate period expiry. Follow-on variable rates quoted are subject to change and may be determined by prevailing market conditions at the time of fixed rate period expiry.

Avant Money has also announced that it is extending its lending locations to include all counties by expanding its network of preferred brokers.
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I am in the process of switching to Avant so this is welcome news. I was previously going to select a 3yr fixed at 2.35% but I think the 4 or 5 year fixed (70-80%) represents the best value now. Whilst also allowing enough time to get to a lower LTV bucket.

Whilst there might be further price competition with incumbents (KBC and UB) leaving the market the options are limited. These new Avant rates represent a considerable saving on the 2.9% I'm paying today.
 
skrooge said:
It might just be ambiguous wording from the IT
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Maybe, but my broker has advised me that Avant do indeed have this switching incentive. I've requested some Avant literature confirming same.

In the meantime if anyone else hears anything further on this (from media, broker or ideally Avant) please share here.
 
gargoil7 said:
Maybe, but my broker has advised me that Avant do indeed have this switching incentive. I've requested some Avant literature confirming same.

In the meantime if anyone else hears anything further on this (from media, broker or ideally Avant) please share here.
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So my broker has advised that Avant has stated that the incentive is not yet avaiable but will be released in 2022 for new applicants & hoped for in early Q1 but no further definitive timeline is currently available. If anyone else hears anything further do share.
 
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My broker advised me of the new 1500 cashback offer too, but I am near completion on my switch so not going to start again to avail of it. It will apply to brand new applicants only from January '22. He said they didn't have much more info as yet.
 
RedOnion said:
Avant set out that they will apply an ERC, but you can only break out to switch rates with their prior agreement.
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Do you know what would happen if you were on an Avant fixed rate and you made an overpayment of more than 10% without their agreement? Would they simply levy the ERC and leave you on the same fixed rate?
 
Ariel7 said:
My broker advised me of the new 1500 cashback offer too, but I am near completion on my switch so not going to start again to avail of it. It will apply to brand new applicants only from January '22. He said they didn't have much more info as yet.
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Avant have advised our broker that their €1,500 cashback offering will be offered to any new applications submitted to them from 1st January to 31st March 2022.
 
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