I sent out a press release this afternoon.
Fair Mortgage Rates Campaign welcomes the launch of Avant Mortgages
We have been campaigning for some years to highlight the very high mortgage rates paid by Irish mortgage holders so we welcome the launch of a rate of 1.95% today by Avant Mortgages
Summary of Avant Mortgages
| 3 years | 5 years | 7 years |
| <60% | 1.95% | 1.95% | 1.95% |
| <70% | 2.1% | 2.1% | 2.3% |
| <80% | 2.2% | 2.2% | 2.4% |
| >80% | 2.35% | 2.5% | 2.65% |
Brendan Burgess said today that Avant has by far the lowest rate for people borrowing less than 60% of their Loan to Value. They are have the lowest rates for those who wants to fix for 7 years.
Some people argue that a difference of only .3% between Avant and the next cheapest is not that significant. As it’s a saving every year, then it’s very significant.
A rate of 1.95% over 7 years is a very low rate and borrowers should give serious consideration to it.
And it must be remembered that there are probably around 100,000 customers between Bank of Ireland, Ulster Bank and permanent tsb who are paying rates of 4% and more. With the increases in the value of properties over the last few years, many of these have substantial equity in their home and could halve their mortgage rate by switching.
For example, a Bank of Ireland customer with a mortgage of €200k on a property worth €400k, could save about €5,000 a year by switching to Avant. Or put it another way, the savings would pay the legal costs within 2 months of switching.
It’s not such great news for First Time Buyers who typically borrow up to 90% of the value of their home. The rates from other lenders, especially combined with cash backs, make this rate less competitive.
Brendan Burgess
Comparison tables below
This makes Avant significantly cheaper than all the other lenders for those borrowers with a LTV of less than 60%
Best Buys under 60% LTV
| Max LTV | Fixed term | Rate | Cash back | Notes |
| Avant | 60% | 3, 5 or 7 years | 1.95% | | |
| Ulster | 80% | 5 years | 2.2% | €1,500 | €300k minimum |
| KBC | 60% | 2 year | 2.25% | €3,000 for switchers only | Current a/c customers |
| KBC | 60% | 3 year | 2.25% | €3,000 for switchers only | Current a/c customers |
| AIB | 50% | 5 years Green | 2.25% | | Green Mortgage |
| Ulster | 90% | 2 years | 2.3% | €1,500 | FTB only |
Not such good news for First Time Buyers
For the typical FTB who would be borrowing up to 90% of the value of their home, Ulster Bank is clearly better value with a slightly lower rate and a contribution of €1,500 towards legal fees.
Best buys 80% to 90% LTV
| Max LTV | Fixed term | Rate | Cash back | Notes |
| KBC | 90% | 2 year | 2.3% | €3,000 for switchers only | Current a/c customers |
| | | | | |
| Ulster | 90% | 2 year FTB only | 2.3% | €1,500 | 3.5 times LTI |
| KBC | 90% | 3 year | 2.35% | €3,000 for switchers only | Current a/c customers |
| Avant | 90% | 3 years | 2.35% | | |
| Ulster | 90% | 2 years | 2.45% | €1,500 | Non FTBs |
| | | | | |
| KBC | 90% | 5 year | 2.5% | €3,000 for switchers only | Current a/c customers |
| KBC | 90% | 1 year | 2.5% | €3,000 for switchers only | Current a/c customers |
| Avant | 90% | 5 years | 2.5% | | |
| AIB | 90% | 3 or 5 years | 2.55% | €2,000 for switchers only | |
But Avant does have the lowest long term fixed rates
A First Time Buyer who needs 90% Loan to Value can fix for 7 years with Avant at 2.65%
A comparison of longer term fixed rates
| Max LTV | Fixed term | Rate | Cash back | Notes |
| Avant | 80% | 7 years | 2.4% | | |
| Avant | 90% | 7 years | 2.65% | | |
| AIB | 80% | 7 years | 3.05% | €2,000 switchers | |
| AIB | 80% | 10 years | 3.2% | €2,000 switchers | |
| Ulster | 90% | 7 years | 3.14% | €1,500 | |
| Ulster | 90% | 10 years | 3.15% | €1,500 | First time buyers only |
| Ulster | 90% | 10 years | 3.25% | €1,500 | Non first time buyers |
| KBC | 80% | 10 years | 2.99% | €3,000 switchers | |
| KBC | 90% | 10 years | 3.2% | €3,000 switchers | |
www.avantmoney.ie
